USDCHF: Dollar Under Pressure, Targets 0.95

As the EURUSD pair surged on Thursday, the USDCHF pair did the opposite and dropped sharply as these two are negatively correlated to each other.

The USDCHF pair is now sliding at the lower trend line of the bearish trend line and it appears this trend line could be broken to the downside very soon. Should this happen, bears would push the greenback lower to the first stronger support of 0.9535. However, it's possible that the psychological level of 0.95 could be in play eventually.

On the upside, bulls need to push the greenback back above 0.9640 to stop the immediate bearish threat. If this is achieved, further relief rally toward 0.97 could occur.

Fundamentally, there is an uncertainty in regards to the the Swiss franc against the greenback, especially in the times of a risk-on sentiment. Moreover, the yield differential is very negative, when shorting this pair. Therefore, dip buyers could reemerge at some of the mentioned supports.

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