Forex
Home›Forex›Major Pairs›USD/CHF drops after US Treasury buyback triggers dolla…
USD/CHF drops after US Treasury buyback triggers dollar selloff
The pair slid to about 0.7979, moving toward the 100-day SMA near 0.7975 after falling below the 50-day SMA around 0.8084.
USD/CHF fell nearly 2% on Wednesday as a US Treasury buyback announcement weighed on the US dollar, while US Treasury yields also declined, FXStreet reported. The pair traded around 0.7979 after topping at 0.8128.
After the announcement, USD/CHF slipped below key technical levels, including the 50-day simple moving average at 0.8084, and pushed toward the 100-day SMA near 0.7975. The move also reflected a shift in momentum, with the RSI falling from about 51 to 36.48.
For further bearish follow through, USD/CHF would need to clear the 100-day SMA and then the 200-day SMA at 0.7932, FXStreet noted. The next downside area cited was 0.7900.
On the upside, buyers would need to reclaim the 0.8000 area before any retest of the March 31 high of 0.8042, with higher resistance levels including the 50-day SMA at 0.8084 and the August 13 high of 0.8147.