USD/CHF: Swiss franc rises to 5-week highs on safe-haven appeal

FXStreet (Mumbai) - The USD/CHF pair prolongs its downward trajectory in the early European trades, as the CHF bulls continue to dominate amid ongoing risk-aversion sparked by deepening China stocks rout.

USD/CHF recovers from 5-week lows

Currently, the USD/CHF pair trades -0.49% lower at 0.9419, recovering slightly from fresh multi-week lows reached at 0.9367 in early Asia. The major keeps falling mainly driven by broad CHF strength following the latest 9% crash in Chinese equities which triggering a generalized risk-off moods and boosted the demand for traditional safe-havens such as CHF.

On the USD-side of the story, the greenback extends the recent declines and remains broadly weaker amid unwinding of longs after FOMC minutes squashed Sept rate hike expectations.

Later in the day, the Swiss currency may remain supported as risk-off sentiment is likely to extend amid a data-empty EUR calendar ahead.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9479 (Today’s High) levels and above which it could extend gains 0.9500 levels. To the downside, immediate support might be located at 0.9367 (Today’s Low) levels and below that at 0.9329 (July 10 Low) levels.

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