USD/CHF tumbles to test 0.9300 as CHF soars

• Swiss franc rises across the board during the American session.
• DXY is still in positive ground supported by higher US yields.
• USD/CHF drops ending a six-day positive streak.

The USD/CHF dropped during the last hour more than 30 pips, with a particular trigger, and bottomed at 0.9305, the lowest level since last Wednesday. The pair remains near the lows, testing the 0.9300/05 area.

The move lower in USD/CHF took place amid a broad-based strength in the Swiss franc. At the same time, EUR/CHF dropped to 1.0138, hitting a fresh daily low.

In Wall Street, the Dow Jones is falling 0.60% and the Nasdaq drops by 1.80%. European markets are falling 0.45% on average. US yields printed fresh cycle highs on Monday, the 10-year yield at 2.786% and the 30-year at 2.80%.

The DXY is up 0.09% at 99.92, supported by the sell-off in Treasuries, slightly below last week's high. On Tuesday, key inflation data is due in the US.

USD/CHF back below the 20-SMA

The USD/CHF is falling 30 pips compared to Friday’s close. It is the worst performance in more than a week. Price is back under the 20-day Simple Moving Average that is turned south, suggesting some weakness ahead. The next support level is seen at 0.9290.

On the upside, a daily close above 0.9350 should open the doors to more gains, particularly if the dollar breaks the 0.9375 resistance area.

Technical levels