USD/CHF Drops to Fresh 4-Week Lows
USD/CHF had a short-lived recovery during the European session and resumed the decline on American hours. Recently fell to 0.9802, hitting the lowest level since February 15. The pair is about to end the week slightly above 0.9800, 280 pips below Thursday’s highs.
The Swiss franc tumbled in the market immediately after the European Central Bank decision, but then when the euro bounced to the upside, so it did the Swissy. USD/CHF went from 5-week highs to 3-week lows in minutes.
USD/CHF capped by the 20-WMA
Is it the second weekly decline in a row for the US dollar, that continues to be capped by the 20-week moving average that stands at 0.9970/80.
The technical outlook weakened significantly for greenback on Thursday. The decline pushed the price below the 20-day moving average, that was offering support and also under 0.9850 - 0.9880, that was a key short-term support area.
In the short-term the outlook now favor the downside. Below 0.9780/85, USD/CHF could extend the decline to test February lows that lie at 0.9655.
(Market News Provided by FXstreet)
