USD/CHF Targets 0.9000 Psychological Support As Selling on Greenback Intensifies
The USD/CHF pair extended its slide for the second straight session, taking it on a path to a lower weekly close as the selling on the greenback intensified on Friday.
The plunge in the pair followed abysmal US economic data, which showed a huge dip in retail sales from 10.7% in March to 0.0% in April. The core retail sales also witnessed a steep fall from 9.0% to -0.8%, falling well below market expectations. Industrial Production also dropped off from 2.4% in March to 0.7% in April, cementing a Friday to forget for the greenback.
The fall in bond yields also helped to put down the US Dollar, as the 10-year US Treasury bond yield fell 1% on the day. These data have put the USD/CHF well on the way towards the 0.9000 psychological support.
Technical Levels to Watch
The USD/CHF pair is violating the 0.90351 support. A break of this level opens the door towards 0.89953, thus pushing prices below the 0.9000 psychological support. Continuation of the downtrend is secured if the pair achieves a lower low via a breakdown of the 0.89953 support. This action opens the door for bears to aim for additional downside targets at 0.89505 and 0.89227.
On the other hand, bulls need a recovery of price above 0.90809 to give the pair a chance at a bullish reversal. This move needs to transcend 0.91361, 0.91889, and 0,92264 before the bullish reversal is confirmed. These price levels may also qualify as rally-selling points within the context of the downtrend.