USD Tumbles 2% Against CHF After US Treasury Buyback Shock

The US dollar tumbled nearly 2% on Wednesday against the Swiss franc after the US Treasury announced a bond buyback, sending interest rates plummeting. The USD/CHF pair broke below the 50-day Simple Moving Average (SMA) at 0.8084 and is now targeting the 100-day SMA at 0.7975.

The Relative Strength Index (RSI) fell from around 51 to 36.48, indicating that sellers are gaining near-term momentum in the market. The USD/CHF pair trades at 0.7979 after reaching a high of 0.8128.

For a bearish continuation, the USD/CHF must clear the 100-day SMA, followed by the 200-day SMA at 0.7932. On further weakness, the next stop is 0.7900.