USD/CHF tumbles to 4-week lows on USD slide

The Swiss franc rose after Janet Yellen speech. USD/CHF dropped 70 pips from 0.9645 and bottomed at 0.9563, the lowest since late July. 

The pair awaits now Draghi’s speech near daily lows, holding a bearish tone. The downside bias was reinforced after USD/CHF broke the 0.9580/90 area that capped the decline during the previous two weeks. 

If the US dollar manages to rise back above 0.9590, it could remove the pressure. Above the next resistance levels might be seen at 0.9630 and 0.9670. On the flip side, the immediate support is located at 0.9550 (June 29 low), followed by 0.9520/25 (Jul 18 low) and 0.9490 (Jul 27 low). 

Yellen sends USD lower 

Fed’s Chair said nothing about what the central bank could do in the near future. She spoke about the financial crisis and regulation. It was a “bored” speech in terms of markets analysts. 

The “bored” words triggered a sharp decline of the greenback. The Dollar Index reached 95.55, the lowest since August 4.