“¢ The USD bulls remain on the defensive after Friday’s unimpressive GDP numbers.
“¢ Negative equities support CHF’s safe-haven demand and add to the selling pressure.
After an initial uptick to 0.9956, the USD/CHF pair met with some fresh supply and was now seen extending Friday’s retracement slide from one-week tops.
The US Q2 GDP growth figures failed to impress the US Dollar bulls, anticipating an even stronger reading, and prompted some long-unwinding trade. The USD remained on the back foot and kept exerting downward pressure on the major at the start of a new trading week.
Adding to this, a weaker opening across European bourses provided an additional boost to the Swiss Franc’s safe-haven appeal and further collaborated to the pair ongoing retracement slide farther below mid-0.9900s.
It would now be interesting to see if the pair continues to find some buying interest near the 0.9900 handle or the downward momentum is strong enough to drag the pair below the mentioned support to confirm a fresh bearish breakdown.
There isn’t any major market-moving economic data due for release on Monday. Hence, the pair remains at the broader market risk sentiment and the USD price dynamics.
Technical levels to watch
Immediate support is pegged near the 0.9915 horizontal level and is closely followed by the 0.9900 handle, below which the downfall is likely to get extended further towards 0.9860-55 support area.
On the upside, momentum back above the 0.9950 region could assist the pair to aim back towards challenging the 0.9985-90 supply zone before eventually aiming to test the next resistance near the 1.0025 area.
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