USD/CHF extends slide below 0.9700 to fresh four-month lows

• US dollar drops further across the board on Monday, DXY to test December lows. 
• USD/CHF eyes 2019 lows, negative momentum intensifying. 

The USD/CHF printed a fresh multi-month low under 0.9700 during the American session as the US dollar remains under pressure across the board. The pair bottomed at 0.9681, a level last seen back on August 13. 

As of writing, USD/CHF trades at 0.9690, down 55 pips for the day and more than 120 pips below Friday’s high. The Swiss franc is among the top performers on Monday, adding more pressure to the USD/CHF. 

Technical, USD and holiday season 

Last Friday, USD/CHF broke under the 0.9760/80, a critical support range opening the doors to more losses. Technical factors also contribute to the slide of the pair. On Monday, it is testing levels under 0.9700 and the next strong support level might lie at 0.9675, followed by the intraday 2019 low at 0.9658. 

In December so far, USD/CHF lost more than 300 pips. The key factor behind this has been the decline of the US dollar. Year-end flows and an improvement in risk sentiment weighed on the greenback. Today the US Dollar Index is falling 0.19%, currently trading at 96.73, about to post the lowest daily close since July.

Technical levels