USD/CHF falls to a one-week low as traders wait for Powell.
The USD/CHF exchange rate fell for the second consecutive trading day, reaching a new low that’s more than a week old. The decline could be entirely attributable to some technical selling, which occurred in conjunction with muted demand for USD. Bets on aggressive rate hikes from the Fed in an effort to prop up the USD and limit losses in advance of Powell’s speech
On Thursday, the United States Dollar to Swiss Franc currency pair extended the retracement decline that began the previous day from the highest level since July 14 and edged down for the second consecutive day. This also represents the fourth day of a negative move in the previous five, which has dragged spot prices to almost a one-week low, which was below the middle of the 0.9700s during the first part of the European session.
It turns out that the overnight inability to gain acceptance above the mid-0.9800s was a crucial element that prompted some technical selling around the USD/CHF pair. A muted price action for the US dollar likewise fails to provide much in the way of assistance. Having said that, the continued decline does not seem to be caused by any fundamentally clear trigger, and it is thus more likely to be contained, at least for the time being. The level of the 50-day simple moving average (SMA), which is currently at 0.9689, is likely to provide a safety net for price and a rallying point for bulls. One place where the decline may slow is at this level.
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