USD/CHF refreshes monthly lows below 0.98 post-PMI data
- USD/CHF break below 0.98, on track to end the fourth day in a row lower.
- Worse-than-expected PMI data from the U.S. increased the pressure on the DXY.
- US stocks start the day on a positive note.
The USD/CHF pair dropped below the 0.98 mark and renewed its lowest level since October 20 at 0.9789 in the early NA session and went into a consolidation phase amid the thinning out trading volume. At the moment, the pair is trading at 0.9793, down 0.26% on the day.
Today's data from Markit Economics showed that both the manufacturing and the service sector's business activity in the United States expanded at a lower rate than markets were expecting. Pressured by the data, the US Dollar Index plummetted to a fresh six week low at 92.66. As of writing, the index was at 92.70, down 0.37% on the day.
On the other hand, major equity indexes in the U.S. started the day on a positive note with the S&P 500 and the Nasdaq Composite indexes both advancing to fresh intra-day all-time highs. However, stock markets are going to close around mid-day and are unlikely to impact the pair's price action in the remainder of the session. Following Monday's modest rise, the pair stayed under pressure throughout the week and is on track to close the fourth day in a row with losses. On a weekly basis, is losing a little over 100 pips.
Technical levels to consider
The pair could encounter the first technical support at 0.9720 (20-WMA) ahead of 0.9630 (200-WMA) and 0.9560 (Sep. 15 low). On the upside, resistances align at 0.9800 (psychological level), 0.9860 (50-DMA) and 0.9945 (Nov. 21 high).