USD/CHF extends losses, 0.98 in sight

The USD/CHF pair is extending its losses in the early NA session to a fresh low since March 27 at 0.9816. As of writing, the pair was trading at 0.9820, losing 0.2% on the day.

The weak performance of the global equity indexes coupled with the ongoing USD sell-off on Wednesday is allowing the pair to add to its losses. During the first half of the week, the pair lost around 200 pips. The US Dollar Index, which tracks the greenback against a basket of six trade-weighted peers, remains below 98 on Wednesday, struggling to make a meaningful recovery as there are no fundamental catalysts that could bring the demand back for the greenback. At the moment, the index is at 97.72, losing 0.4% on the day.

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Additionally, following the sharp falls witnessed in the Asian and European equity indexes, Wall Street opened the day lower, with the S&P 500 Index losing 0.8% at the moment, and the Dow Jones Industrial Average dropping 2 points. The CHF's safe haven status helps the currency remain strong against the greenback, keeping the pressure on the USD/CHF pair.

Technical outlook

With a break below 0.9810 (Mar. 27 low), the pair will touch its lowest in more than six months on its way to 0.9765 (Oct. 7 low) and 0.9700 (psychological level). To the upside, resistances align at 0.9850 (daily high), 0.9900 (psychological level) and 0.9950 (20-DMA).

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