The Greenback is on the ropes today, struggling versus the majors. With only a few hours left in the Thursday session, the EUR/USD (+0.38%), USD/CHF (-0.54%), and the USD/CAD (-0.56%) have been the key movers. For the Swissy, rates are in a freefall going into Friday.

On the economic news front, there isn’t much planned for the end of the week. As it pertains to the USD/CHF, about the only market drivers that may move the dial are surprise news items. Technically, it is worth noting that safe-havens have been performing well lately. Gold is back on the doorstep of $1900, the Swissy is beneath 0.9000, and the Japanese yen is very near monthly lows. At this point, it appears that investors are pricing safe-havens even as equities are trading at lofty valuations.

USD/CHF Takes Out The 0.9000 Handle

It has been an active day for the USD/CHF, with rates taking out the 0.9000 handle. While this level doesn’t have the importance of 1.0000, it still marks a key psychological barrier in 2021’s action. In the event we see the Swissy continue to plunge, two potential support levels may quickly come into view.

The weekly chart above gives us a good look at the intermediate-term action in the Swissy. Until late March, the Greenback was making significant progress in paring 2020’s losses. Since then, it’s been the Swiss franc backers in control, driving a 400+ pip five-week losing streak.

Here are two key levels worth watching in the USD/CHF:

• Support(1): 78% Retracement 2021’s range, 0.8910
• Support(2): 2021’s Low, 0.8757

Bottom Line: If we see the USD/CHF continue its bearish ways, then 2021’s 78% retracement level may come into play relatively soon. Until elected, I’ll have buy orders in the queue from 0.8914. With an initial stop loss at 0.8889, this trade produces 25 pips on a standard 1:1 risk vs reward ratio.