USD/CHF drops further to test Wednesday’s low

Having peaked at six-week highs, the USD/CHF pair extends its downbeat momentum into a second day today, as the US dollar remains broadly weak amid slightly positive risk conditions. 

USD/CHF holds above 0.98 handle

Currently, the USD/CHF pair trades -0.18% lower at 0.9835, retreating slightly from session lows struck at 0.9829. The major remains under pressure this session as markets remain unnerved ahead of the BOE rate decision, and hence, prefer to hold the safe-havens such as the Swiss franc.

Moreover, the upside consolidation seen in the greenback versus its six major competitors, also added to the subdued trading activity experienced by USD/CHF. The USD index now drops -0.11% to 96.25 levels.

Next in focus for the major remains the BOE events ahead of the US PPI and unemployment claims data due later in the American session.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9858 (200-DMA) and above which it could extend gains to 0.9894 (previous highs). To the downside, immediate support might be located at 0.9800 (round number) and below that 0.9770/68 (50 & 20-DMA).