USD/CHF drops to 1.0060, 2-day low

A decline of the US dollar across the board, pushed USD/CHF further to the downside. The pair broke below 1.0090 and accelerated the decline. 

It bottomed at 1.0060, the lowest level since Tuesday’s Asian session. Price holds near the lows with a prevailing bearish momentum as the greenback remains weak in the market. 

An interview on CNBC, with Treasury Secretary, Steven Mnuchin, triggered the decline of the US dollar earlier today. He did not bring any details of the tax reform plan. Regarding the currency market, he said that the appreciation of the US dollar shows confidence on the US economy and did not accuse China of being a currency manipulator. He expects the tax reform to be approved by Congress before the August recess. 

Today’s US data included, initial jobless claims that rose 244K and the Chicago Fed National Activity Index that came in at -0.05; both reports were below expectations and failed to give support to the US dollar. The DXY is trading at 3-day lows around 101.00. 

USD/CHF technical level 

To the downside, support levels might be located at 1.0060 (daily low), 1.0045 (Feb 20 high) and 1.0010/15 (Feb 20 low). On the upside, potential resistance areas might be seen at 1.0075 (Feb 22 low), 1.0115 (daily high) and 1.0140 (Feb 22 high).