The USD/CHF plunged nearly 2% on Wednesday, dropping to 0.7979 from an intraday high of 0.8128, as the US Dollar suffered sharp losses following a US Treasury buyback announcement. The pair is now testing the critical 100-day simple moving average support level as selling pressure intensifies across Dollar positions.
US Treasury yields tumbled in response to the buyback program, triggering widespread greenback weakness against major currencies. The Swiss Franc emerged as a key beneficiary, surging as safe-haven demand combined with broad-based Dollar liquidation. Forex traders focused on USD pairs are experiencing significant volatility, with the move representing one of the sharpest single-day declines for USD/CHF in recent sessions.
The technical breakdown through the 100-day SMA suggests further downside potential if support fails to hold. Brokers should anticipate heightened client activity as positioning adjusts to the new Treasury policy dynamics affecting Dollar valuations.
FXnCO Insight
Monitor the 100-day SMA at current levels closely, as a confirmed break could accelerate USD/CHF losses toward 0.7900 with increased margin requirements likely.
Source: FXStreet