USD/CHF drops to lowest level in almost a week, eyes 0.9500

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  • Swiss franc among top performers on Monday, despite risk appetite.
  • US Dollar weakens amid lower US yields.
  • USD/CHF suffers the worst decline in weeks, down almost a hundred pips.

The USD/CHF dropped further after the beginning of the American session and bottomed at 0.9521, reaching the lowest level since Tuesday. It is hovering around 0.9530, with a negative tone, down a hundred pips for the day.

The Swiss franc is among the strongest currencies of the day. EUR/CHF fell from near 0.9800 to 0.9717 (1-week low) and GBP/CHF tumbled to 1.1543 (lowest since July 26). CHF/JPY rose back above the 20-day Simple Moving Average and the 141.00 area.

The US dollar is falling across the board. The DXY is down 0.37%, approaching 106.00. The US 10-year yield stands at 2.78% and the 30-year at 3.00%, both far from Friday’s top.

On Friday, the US dollar rallied following the release of the US employment report that came in above expectations. On Monday it lost most of those gains. Regarding data, attention now turns to the July CPI due on Wednesday.

The bias in USD/CHF is tilted to the downside. A consolidation below 0.9540 would keep the door open for a test of 0.9500. Below the next support is the August low at 0.9469. If the USD dollar break above 0.9660 it would negate the bearish bias: it would be back above critical supports and surpass the 20, 55 and 100-day  Simple Moving Averages.

Technical levels