- The DXY reverses declines below 90.00 as US yields turn lower.
- The Swiss franc is heading towards the highest close in two weeks against the US dollar.
The USD/CHF it is falling for the second day in a row. The pair broke lower during the US session and fell to 0.8966, reaching the lowest level since Wednesday. It remains close to the lows clinging to recent losses.
The US dollar weakened in recent hours amid a drop in US bond yields and despite lower US equity prices. The 10-year yield fell to 1.56%, while the Dow Jones fell 0.41%. Market participants continue to digest the NFP figures released on Friday, as no data will be released on Monday. The key report will be Thursday with inflation figures, and also on that day, the European Central Bank (ECB) will have its policy meeting.
Another flop at 0.9050
USD / CHF returned below the 20-day moving average and is close to the 0.8960 support area again. A close below would suggest more weakness for the dollar. The next support is at 0.8930.
The reversal in USD / CHF took place after it again failed to break the 0.9050 resistance. The aforementioned area remains critical, and a breakout to the upside would point to more gains. As long as it is below that zone, the consolidation phase with a bearish bias will continue.
Technical levels
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