“¢ The ongoing USD pull-back keeps exerting downward pressure on Tuesday.
“¢ The pair seemed unaffected by risk-on mood/an uptick in the US bond yields.
After an initial uptick to 0.9990 level, the USD/CHF pair met with some fresh supply and has now dropped to near 3-week lows.
The US Dollar extended its retracement slide from a five-month high set yesterday and was seen as one of the key factors behind the pair’s intraday slide of over 40-pips from session tops.
Currently trading around mid-0.9900s, the pair seemed unaffected by a goodish pickup in the European equity markets, which tends to dent the Swiss Franc’s safe-haven appeal.
Even a modest uptick in the US Treasury bond yields, albeit lacked any strong conviction, did little to influence the price-action, with the USD price-dynamics acting as an exclusive driver of the pair’s momentum through the mid-European session.
Tuesday’s thin US economic docket, highlighting the release of Richmond manufacturing index is unlikely to provide any meaningful impetus as investors wait for the release of latest FOMC meeting minutes on Wednesday.
Technical levels to watch
A follow-through retracement below 0.9940-35 immediate support is likely to accelerate the fall towards the 0.9900 handle, which if broken might continue dragging the pair further towards 0.9850-45 support area.
On the upside, the 0.9990-1.0000 area now seems to have emerged as an immediate hurdle, above which the pair is likely to make a fresh attempt towards retesting the 1.0050-55 supply zone.
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