- USD/CHF came under some renewed selling pressure amid weaker greenback.
- The upbeat market mood failed to impress bulls or lend any support to the pair.
- Wednesday’s focus will remain on the highly anticipated FOMC policy decision.
The USD/CHF pair extended its intraday rejection slide from the 0.9100 neighbourhood and has now dropped back closer to two-week lows.
The pair failed to capitalize on its early uptick, instead met with some fresh supply and drifted back into the negative territory amid the prevalent selling bias surrounding the US dollar. Expectations that the Fed will maintain an ultra-accommodative policy stance continued weighing the greenback, which, in turn, was seen as a key factor exerting pressure on the USD/CHF pair.
Bulls seemed rather unimpressed by the prevalent upbeat market mood, which tends to undermine the Swiss Franc’s relative safe-haven status. The global risk sentiment remained well supported by the latest optimism over a potential vaccine for the highly contagious coronavirus disease, especially after AstraZeneca resumed the phase-3 trials for its vaccine candidate.
It will now be interesting to see if the USD/CHF pair is able to find any support at lower levels or prolongs its recent downfall as investors start repositioning for Wednesday’s highly anticipated FOMC monetary policy decision. Heading into the key central bank event, the release of the US Monthly Retail Sales figures will be looked upon for some short-term trading opportunities.
Technical levels to watch