USD/CHF tests 50-DMA to the downside on risk-off

By FXStreet FXStreet (Mumbai) – The downside in the USD/CHF pair found fresh sellers near 5-DMA at 1.0042, pushing the prices deeper in the red, as the Swiss franc strengthened on increased safe-haven bids.

USD/CHF drops to 50-DMA

Currently, the USD/CHF pair trades 0.47% lower at fresh session lows of 1.0026, testing 50-DMA support placed at 1.0024. The Swiss franc continues to climb higher amid a generalized risk-off sentiment, with markets badly hit by China’s yuan devaluation fallout. Most major Asian equities, including Japan’s Nikkei, were heavily sold-off into the heightening Chinese crisis while weaker oil also added to the negative sentiment.

Broad based US dollar weakness on the back of limited demand for risk currencies, further weighed on the USD/CHF, dragging it down from monthly tops reached earlier this week. The US dollar index falls -0.28% to 99 handle, having failed to take out 119.73 barrier.

Looking ahead, the major is expected to remain bid as long as risk-off remains in play amid negative global equities. While markets await the foreign currency reserves data due to be published by the SNB for further cues.

USD/CHF Technical Levels

To the upside, the next resistance is located 1.0075/77 (daily high/ 1h 50-SMA) levels and above …read more

Source:: FX Street