USD / CHF falls further below 0.9000, the lowest level since February 24

• USD / CHF continued to lose ground for the fourth consecutive session amid a sustained selloff of the USD.
• The Fed’s dovish expectations continued to act as a headwind for the dollar and put pressure on it.
• Risk appetite did not influence the safe haven CHF much or support the pair.

The pair USD/CHF it further weakened below the key psychological level of 0.9000 and fell to the lowest level since February 24 during the middle of the European session.

The pair extended its recent bearish trajectory and witnessed some subsequent selling on the first day of a new trading week. This marked the fourth day in a row of a negative move and was solely sponsored by the prevailing bearish sentiment around the US dollar.

The USD struggled to capitalize on / preserve its modest intraday gains, instead finding new supply and falling to nearly two-and-a-half-month lows amid dovish Fed expectations. Friday’s depressing US monthly employment report He reaffirmed that the Fed will keep interest rates low for a longer period.

The NFP headline showed that the US economy added just 266,000 jobs in April, disappointing consensus estimates that point to a reading of nearly a million. Additionally, the prior month’s reading was revised downward and the unemployment rate rose to 6.1% from 6.0% in March.

Meanwhile, the underlying bullish tone in financial markets, which tends to weigh on the safe-haven Swiss franc, also did little to support the USD / CHF pair. That said, oversold conditions on short-term charts could help limit the downside, at least for now.

There is no major market moving economic data released in the US on Monday. Therefore, USD price dynamics will continue to play a key role in influencing the USD / CHF pair. Apart from this, the broader market risk sentiment will also be considered for some trading opportunities.

Technical levels