USD/CHF drops to fresh 2-week lows, bears eyeing 0.9600 mark

• USD/CHF meets with some supply on Tuesday amid renewed USD weakness.
• Bulls seemed rather unimpressed by the positive mood in the equity markets.

The USD selling bias picked up pace in the last hour and dragged the USD/CHF pair to fresh two-week lows, around the 0.9620-15 region.

The pair failed to capitalize on the previous day’s attempted recovery move and met with some fresh supply on Tuesday amid persistent selling bias surrounding the US dollar.

Despite a goodish pickup in the US Treasury bond yields, the greenback struggled to attract any meaningful buying interest and remained depressed through the mid-European session.

Apart from a broad-based USD weakness, the downtick lacked any obvious fundamental catalyst and also seemed rather unaffected by a turnaround in the global risk sentiment.

Investors turned optimistic in the wake of some encouraging signs that the pandemic peak could come soon and the same was evident from a positive mood in the equity markets.

The risk-on mood tends to undermine the Swiss franc’s perceived safe-haven demand, albeit failed to impress bullish traders or extended any support to the major, at least for now.

It will now be interesting to see if bears maintain their dominant position or the pair is able to find any respite at lower levels amid absent relevant market moving economic releases.

Technical levels to watch