USD/CHF rebounds after falling to 0.9635, 5-week low

USD/CHF dropped further during the American session and bottomed at 0.9635, the lowest level in a month. From there it rebounded trimming losses. The recovery was capped by the 0.9700 handle and currently it trades at 0.9685, down 110 pips for the day.

From the top to the bottom

Today’s decline is the third in a row. From Wednesday’s highs, it has fallen almost 300 pips, changing dramatically the short-term trend. From testing the highs of the second quarter dropped below July lows in a few days. The short-term tone now favors the Swiss franc.

Today USD/CHF traded below 0.9650/60 but rose back above. The mentioned area is a relevant area the could offer now significant support. A consolidation below would open the doors for more slides. The next support could be seen at 0.9580.