The US Dollar (USD) extended its losses for a second consecutive day against the Swiss Franc (CHF) on Friday, with the USD/CHF pair testing critical support at the 0.8300 level. This move comes after a knee-jerk reaction at 0.8345 on Thursday, although the pair remains on track to complete a seven-week rally [1]. The recent decline in the US Dollar is attributed to easing concerns over the global bond rout, following strong demand at a US 30-year Treasury bond auction on Thursday. This event triggered a moderate pullback in global yields, reducing the safe-haven appeal of the US Dollar and providing support for the Swiss Franc and other G8 currencies in a relatively calm trading session [1].
From a technical perspective, USD/CHF is trading at 0.8304 after being rejected at 0.8345, forming a lower high that suggests bullish momentum is waning. The 4-hour Relative Strength Index (RSI) is around 44, indicating bearish divergence, and the Moving Average Convergence Divergence (MACD) has turned negative, both pointing to the potential for a deeper bearish correction. Bears are watching for a break below the 0.8300 support area and the 38.2% Fibonacci retracement of September's rally at 0.8264, which could open the way to further downside targets at 0.8227 and 0.8183. Conversely, a bullish move above 0.8345 would negate the bearish outlook and shift focus back to the October 1 high near 0.8380 [1].
In terms of daily performance, the US Dollar was down 0.11% against the Swiss Franc and showed weakness against most major currencies, except for the Japanese Yen, where it gained 0.24%. The heat map of percentage changes highlights the broad-based softness of the US Dollar in the current session [1].
No forward-looking statements or analyst opinions beyond the technical analysis were provided in the source article.
CONCLUSION
The USD/CHF pair is under pressure as easing bond market fears have reduced demand for the US Dollar, pushing it toward key support levels. Technical indicators suggest a potential for further downside unless the pair can reclaim recent highs. Market participants are closely watching the 0.8300 support for signs of a trend shift.