USD/CHF falls under 0.9400 to test June lows

• Swiss franc about to post highest daily close since mid-March versus US dollar.
• Greenback tumbles across the board, DXY drops under 96.50.

The USD/CHF broke below 0.9400 and accelerated to the downside, falling to 0.9375, matching the June low. From the lows, it bounced modestly to the upside, and it is hovering around 0.9385, still under pressure.

The move lower followed a quick and sharp decline of the US dollar across the board. The greenback, measured by the DXY, fell under 96.50, to the lowest in two weeks, after reversing from 97.00.

The decline of USD was followed by a bounce higher in US equity price. Following the latest coronavirus reports, Wall Street turned to the downside while the greenback remained in negative territory.

Technical outlook

The USD/CHF is rebounding after finding support at 0.9375. A break lower would put the pair at the lowest level since mid-March. The next strong support is seen at 0.9325 (Mar 12 low).

On the upside, now 0.9405 is the immediate resistance, followed by 0.9430. The bearish pressure will ease if the dollar manages to break above 0.9445/50 (horizontal level and short-term downtrend line).