USD/CHF breaks below 0.8600

FXStreet (Córdoba) - USD/CHF broke below 0.8600 and extended losses at the beginning of the American session, as the dollar weakens across the board.

Following the strong slump witnessed on the back of SNB decision to remove the franc cap last week, USD/CHF went through a recovery phase that stalled yesterday at the 0.8835 zone. The pair resumed the slide and has fallen nearly 300 pips over the last sessions to hit a low of 0.8560 in recent dealings.

At time of writing, USD/CHF is trading at 0.8575, 2.0% below its opening price. Investors' focus turns now to the ECB meeting tomorrow, which is keeping volume light.

USD/CHF levels to watch

As for technical levels, immediate supports are seen at 0.8539 (Jan 19 low) and 0.8500 (psychological level) ahead of 0.8425 (Jan 16 low). On the flip side, resistances could be found at 0.8720 (100-hour SMA), 0.8770 (Jan 21 high) and 0.8835 (Jan 20 high).

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