USD/CHF headed toward lowest close of the year

USD/CHF dropped further amid a decline of the US dollar following reports that Paul Ryan, House Speaker, went to the White House to tell Trump that are not enough votes to pass the repeal of Obamacare. 

The pair bottomed at 0.9895, hitting the lowest level in two days and currently it trades at 0.9900/05, down 27 pips for the day and 75 pips under last week closing price. The Swiss franc is about to post the highest daily close against the US dollar of the current year. 

USD/CHF reverses to end week on a weak note

The pair is looking at weekly lows at 0.9880 and also at 0.9868, the year-to-date low. The short-term bias continues to favor the downside and a break below 0.9868/80 could open the doors for a decline toward 0.9800. 

On the upside, today’s recovery above 0.9950 was short-lived and the pair quickly erased gains. The bearish pressure increased after breaking the intraday support around 0.9905/10. Greenback needs a consolidation on top of 0.9960 to remove some downside momentum.