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USD/CHF drops to 0.9550 – at fresh monthly lows

FXStreet (Mumbai) - The USD/CHF pair extends losses for the second day in a row and came under renewed selling pressure below a break of the hourly 10-SMA, reaching fresh monthly lows in recent dealings.

USD/CHF rejected at H1 R3

Currently, the USD/CHF pair trades -0.17% lower at 0.9562, hovering in the close vicinity of the fresh monthly lows struck at 0.9550. The USD/CHF pair keeps pushing lower as the renewed risk-aversion wave fuelled by escalating China slowdown concerns, boosts the safe-haven appeal of the traditional safe-haven – the CHF.

Moreover, a fresh sell-off triggered in the US dollar markets also exacerbated the pain in the major, dragging it to multi-week lows.

Later today, the pair will track the sentiment on the European stocks as well as on the US indices while the US macro updates will also keep the traders busy.

USD/CHF Technical Levels

To the upside, the next resistance is located 0.9590 (H1 R3) levels and above which it could extend gains to 0.9625 (hourly 100-SMA). To the downside, immediate support might be located at 0.9548/50 (H1 S1 & Today’s Low and below that at 0.9500 (round number) levels.

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