Swissie trades to session highs against the dollar and euro
European stocks are extending declines on the session and a common and straightforward trade in times like these is when money goes out of key European assets, they tend to move towards the swissie. And right now we're seeing such flows play out.
USD/CHF has touched a session low of 0.9686 alongside EUR/CHF which hit a low of 1.1327 on the session.
As for USD/CHF, sellers have been eyeing a break of lower levels since last week and the break of the 200-day MA (blue line) is significant as it means that the bias in the pair now turns bearish.
Sellers also managed to break below the 38.2 retracement level @ 0.9732, reinforcing that bearish sentiment in the pair and at the moment it looks to be one-way traffic towards the 50.0 retracement level @ 0.9628.
Currently, price also looks to be running away from the 200-week MA:
And that will only give further conviction to sellers that this downside move has more room to go.
