USD/CHF retreats further from monthly highs
- USD slides on the back of changes at the White House.
- USD/CHF correction at a key technical level.
USD/CHF is falling for the second day in a row. It continued to erase last week gains after being unable to hold on top of 0.9500.
The US Dollar dropped across the board on the back of US inflation data (no surprise) and political news. US President Trump fired Secretary of State Tillerson and contributed to dollar weakness. In Wall Street, the Dow Jones opened in positive but turn lower and it was losing 0.55%. On Wednesday, PPI and retail sales data will be released. Next week is the March FOMC meeting.
The pair broke below 0.9460 after US data and bottomed during the US session at 0.9428, the lowest level since Thursday. It pulled back to the level it had before the ECB meeting as it continued to correct lower. On Friday, USD/CHF peaked at 0.9533, the highest level since January 24.
Technical levels
At the moment, USD/CHF trades at 0.9440/45, around key technical levels. One is the 0.9450 zone. Below that area attention would turn to 0.9410/20 (20-day moving average and a short-term uptrend line), the last support for the recent rally; a break lower would clear the way to more losses.
On the upside, if the greenback manages to climb back on top of 0.9450 it could gain momentum. The next resistance might be seen at 0.9500 followed by 0.9530 (Mar 9 high) and 0.9560/65.