The USDCHF is trading back to the low from earlier today at 0.87277.
That level corresponds to the low from March 8 at 0.8728 (see red circle 3) and a swing high going back to January 23 at the same level. (see red circle 1).
So far support is holding. The topside resistance now is at the 50% at 0.8777.
On the downside, break below 0.87277 and traders will look toward the 61.8% of the move up from the December low comes in at 0.86725..
US stocks continue to move lower and that is leading to flight to safety into the CHF.
- Dow is down -1.30%
- S&P is down -1.21%
- Nasdaq is down -1.88%
- Russell 2000 is down -3.13%.
US yields are also sharply lower with the:
- 2 year yield 4.193%, -14.5 basis points
- 5-year yield 3.861%, -13.7 basis points
- 10 year deal 3.95%, -11.9 basis points
- 30-year yield 4.272%, -9.6 basis points
This article was written by Greg Michalowski at www.forexlive.com. Source