USD/CHF breaks range falling to three-week lows under 0.9600

• Fed’s Powell: It is possible our rate rises could cause a recession.
• SNB's Jordan: We may need to raise rates again.
• USD/CHF approaches May and June lows.

After trading in a range during many sessions, USD/CHF broke to the downside falling below 0.9600, for the first time in two weeks. The US dollar weakened across the board during the American session amid an improvement in risk sentiment and lower US yields.

Key support emerges

The break under 0.9620 triggered more losses. So far USD/CHF bottomed at 0.9579, the lowest level since June 3. As of writing, it is hovering around 0.9600. The negative tone persists and the pair could test the area of the May and June lows around 0.9540.

The US dollar weakened across the board in American hours as market sentiment improved. Main US stocks indexes bounced sharply after a negative opening and are gaining by 0.45% on average. Despite stock turning positive, US yield printed fresh lows and contribute to weakening the dollar.

Fed Chair Powell is presenting the semiannual monetary policy report to Congress. He said that rate hikes won’t bring food and gas prices down. He added Fed’s rate hikes could cause a recession.

Earlier, Swiss National Bank President Thomas Jordan mentioned the central bank may need to raise interest rates again. Last week, the SNB surprised markets with an increase in its policy rate from -0.75% to -0.25%.

Technical levels