USD/CHF extends losses to fresh multi-year lows near 0.93

• USD/CHF down more than 150 pips on the day.
• EUR/USD upsurge weighs on the greenback.
• Wall Street starts the day mixed.

After losing nearly 200 pips in the last two days, the USD/CHF pair extended its downfall into a third day on Thursday and refreshed its weakest level since August 2015 at 0.9290. As of writing, the pair was trading at 0.9315, dropping 1.5% on the day.

Although it looked like the heavy selling pressure witnessed on the greenback eased a bit during the first half of the day, the US Dollar Index lost its traction, once again, amid a sharp upsurge seen in the EUR/USD pair. During the press conference following the ECB's decision to leave the QE and interest rates unchanged, President Mario Draghi said that they were not targeting exchange rates, but the FX volatility was a source of uncertainty. During the presser, the EUR/USD pair broke above the 1.25 mark.

Meanwhile, during an interview with the CNBC, Swiss National Bank (SNB) Chairman Thomas Jordan said that they didn't need to focus on the short-term volatility in FX markets and reiterated that they were ready to intervene if necessary. Nonetheless, there was no apparent reaction to these comments and the DXY continues to drive the pair's action. At the moment, the index is down 0.7% on the day at 88.40.

Technical outlook

With a daily close below the 0.93 mark, the pair could extend its drop toward 0.9250 (Aug. 24, 2015, low) and 0.9160 (Jun. 22, 2015, low). On the upside, resistances align at 0.9465 (daily high), 0.9500 (psychological level) and 0.9575 (Jan. 24 high).