“¢ Reviving safe-haven demand keeps a lid on early recovery attempt.
“¢ Fresh USD selling prompts some selling in the past hour or so.
The USD/CHF pair faded a modest uptick to an intraday high level of 0.9890 and is currently placed at 1-1/2 week lows.
The pair extended last week’s rejection slide from the 0.9985-90 supply zone, with a combination of factors continuing to exert downward pressure for the third consecutive session.
Escalating trade rhetoric kept investors on their toes at the start of a new trading week and was eventually seen underpinning demand for traditional safe-haven currencies – like the Swiss Franc.
The risk-off mood was evident from the ongoing slide in the US Treasury bond yields, which kept the US Dollar bulls on the back-foot and further collaborated to the pair’s slide to a seven-day low level of 0.9869.
Today’s thin US economic docket, featuring the release of New Home Sales data is unlikely to provide any meaningful respite for the USD bulls but will still be looked upon to grab some short-term trading opportunities.
Technical levels to watch
Immediate support is pegged near the 0.9855-50 region, below which the pair is likely to head towards challenging the 0.9800 handle. On the flip side, the 0.9890-0.9900 region now seems to have emerged as an immediate hurdle, which if cleared might trigger a short-covering bounce towards 0.9935-40 intermediate resistance en-route the 0.9975-80 supply zone.
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