USD/CHF hits 2-month lows as US dollar extends slide

• US dollar sell-off pushed USD/CHF to 0.9840, lowest since June 14.
• DXY falls for the fourth-day in-a-row, down 1.75% from last week high.
• Next key event: FOMC minutes.

The USD/CHF pair broke below 0.9860 during the US session and fell to 0.9841, hitting a fresh 2-month low. It was about to end the day hovering around 0.9855/60, a hundred pips below the level it had at the beginning of the week.

A sell-off of the greenback triggered the decline. Yesterday’s comments regarding monetary policy from US President Trump weakened the dollar that today on US hours dropped further. The Dollar Index last week peaked at 97.00, the strongest since June of last year. Today it bottomed at 95.25, the weakest since August 9.

On Wednesday, the minutes from the latest FOMC will be released. The tone of the central bank could have an impact on the US Dollar if it brings new information.

Technical outlook

A week ago, USD/CHF was testing the upper limit of a trading range but bounced sharply and today is breaking the downside, signaling further losses. The bearish momentum is likely to remain intact as long as it holds under 0.9910/20.

On the downside, support levels below 0.9840 might be seen at 0.9820, followed by 0.9785/90 (Jun low) and 0.9730.