USD/CHF: Bears flex muscle after Jordan speech and weak US data

Bears remain in control of the USD/CHF pair after SNB’s Jordan hinted at a less possibility of further rate cuts, while the data in the US showed a drop in the manufacturing activity. 

Trades below 100-DMA

The spot currently trades below its 100-DMA located at 0.9940 levels. The demand for CHF spiked after SNB’s Jordan said unconventional measures cannot be deployed endlessly to achieve desirable monetary conditions.

Meanwhile, Philly Fed manufacturing index dropped to 3.6 from 5.1, which further added to the bearish pressure around the USD/CHF pair. The spot clocked a low of 0.9914 before recovering slightly to trade around 0.9932 levels. 

USD/CHF Technical Levels

The immediate hurdle is seen at 0.9940 (100-DMA), which if taken out shall open doors for a recovery to 1.00 handle (previous day’s high). On the other hand, a breakdown of immediate support at 0.9886 would open doors for a slide to 0.9851 (Dec 28 low).