USD/CHF touches a low of 0.9874 on the day
The softer risk tone in the equities space is continuing to see flows into the yen and the swissie with the latter now being the best performing major currency on the day. For USD/CHF, the pair now moves towards a test of the 100-day MA (red line) @ 0.9862 with the greenback struggling to cough out any semblance on a bid in a time when markets are still jittery.
This is leading to further flows into the yen and swissie as we get things going here in the session. Break below the 100-day MA and the next level to eye for will be support at the 0.9800 figure level for USD/CHF.
At this juncture, with the dollar losing its appeal as a haven currency, the obvious play is for further downside in the pair as long as equities continue to stay pressured. Today – and this week – will be a big test of equity bulls’ resolve as the S&P 500 remains the key chart to watch.
As that is the current situation, it doesn’t matter how markets perform in Asian or European trading, the key to risk sentiment in trading this week rests on the performance of the US cash equity market. So, be patient with your trades and keep an eye on stocks later in the session. That will be the biggest tell as to how much of these jitters are justified at the end of the day.