USD/CHF drops further to 0.9650, Swiss data ignored

The USD/CHF pair finally broke the Asian consolidation box to the downside and now came under fresh selling pressure amid broad USD selling, while the CHF bulls remained unaffected by poor Swiss data.

USD/CHF eyes 5-DMA at 0.9640

Currently, the USD/CHF pair trades -0.19% lower at fresh session lows of 0.9651, aiming to test the immediate support placed at 5-DMA. USD/CHF is seen correcting lower after a four-day winning streak, as the US dollar drops across the board on the back of a fresh round of profit-taking ahead of Jackson Hole. The DXY retreats -0.13% to 94.61 levels.

Further, the Swiss franc remains firmer against its American counterpart amid risk-off markets, which boosts the safe-haven bids for the CHF. Meanwhile, markets ignored the downside surprise in the Swiss industrial output data, as the main focus remains on the US durable goods data due later in the NA before the commencement of the Jackson Hole Symposium.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9703 (20-DMA) and above which it could extend gains to 0.9752/63 (100 & 50-DMA). To the downside, immediate support might be located at 0.9628 (daily S1) and below that 0.9585 (Aug 18 low).