USD/CHF retreats from 2-month highs, short-term outlook points to the downside
- Spot at 5-day lows amid a weaker US Dollar.
- Greenback lost momentum during the US session.
The USD/CHF pair is falling on Monday for the second-day in-a-row and reached recently the lowest since last Wednesday at 0.9560. It continues to pullback after hitting on Friday at 0.9648, the highest level in almost three months. The pair continues to move within a bullish channel but in the short-term the momentum favors an extension of the correction.
The tone of USD/CHF points to more losses in the short-term. The key level to watch to the downside could be seen around 0.9470/80, uptrend line connecting March lows.
Today’s slide takes place amid a weak tone of the greenback overall. No particular trigger activated the decline of the US dollar. US Dollar Index Futures dropped to 89.40 to test April lows. Price action on Monday remains limited ahead of US CPI data and FOMC minutes to be released on Wednesday.
USD/CHF Levels to watch
On Friday, the pair broke a short-term uptrend line. Today the pair made a pullback to 0.9605/10 and resumed the decline. It bottomed at 0.9560 that now could be seen as the immediate support, followed by 0.9525 (last week lows/20-day moving average) and 0.9505/10. To the upside, resistance might lie at 0.9595, 0.9610 and 0.9635/40 (Apr 5 high).