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USD/CHF slips below 0.8800 mark for the first time since January 2015

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  • USD/CHF drifts into negative territory for the fourth consecutive session on Thursday.
  • A softer tone around the USD was seen as a key factor exerting pressure on the pair.
  • Better-than-expected US jobless claims data failed to provide any respite to the USD.

The USD/CHF pair refreshed multi-year lows during the early North American session, with bears now looking to extend the downward trajectory further below the 0.8800 mark.

The pair failed to capitalize on its intraday uptick, instead met with some fresh supply near the 0.8825 region and drifted into the negative territory for the fourth consecutive session on Thursday. The prevalent bearish sentiment surrounding the US dollar was seen as one of the key factors that capped the early attempted recovery move.

Investors remain convinced about the likelihood of more US financial aid package. This, along with expectations that the Fed will keep interest rates lower for a longer period, continued weighing on the buck. In fact, the USD Index fell to its lowest level since April 2018 and failed to gain any respite from upbeat Initial Jobless Claims data.

According to the US Department of Labor (DOL), the number of Americans filing for unemployment-related benefits fell to 787K during the week ending December 26. This was well below the 833K expected and the last week's upwardly revised reading of 806K (803K reported previously), albeit did little to impress the USD bulls.

Meanwhile, indications of a subdued opening in the US equity markets did little to influence the Swiss franc's safe-haven demand or provide any meaningful impetus. Nevertheless, the USD/CHF pair remains on track to post its lowest monthly close since April 2014 and end the year on a downbeat note, recording around 9% fall in 2020.

Technical levels to watch

USD/CHF

Overview
Today last price 0.8798
Today Daily Change -0.0022
Today Daily Change % -0.25
Today daily open 0.882
Trends
Daily SMA20 0.8878
Daily SMA50 0.9011
Daily SMA100 0.907
Daily SMA200 0.9298
Levels
Previous Daily High 0.8854
Previous Daily Low 0.8815
Previous Weekly High 0.8919
Previous Weekly Low 0.8833
Previous Monthly High 0.9208
Previous Monthly Low 0.8982
Daily Fibonacci 38.2% 0.883
Daily Fibonacci 61.8% 0.884
Daily Pivot Point S1 0.8806
Daily Pivot Point S2 0.8791
Daily Pivot Point S3 0.8766
Daily Pivot Point R1 0.8845
Daily Pivot Point R2 0.8869
Daily Pivot Point R3 0.8884

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