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  • Risk-aversion dominates the market action.
  • European equity indices record moderate losses on Friday.
  • US Dollar Index fails to hold above 96.50.

After spending the Asian session in a very tight range near the 0.9970 handle, the USD/CHF pair came under a modest pressure during the European trading hours as investors started to look for safer assets amid resurfacing concerns about the economic crisis in Turkey. At the moment, the pair is trading at 0.9953, losing 0.16% on the day.

Earlier today, news of the U.S. not willing to pay anything for the release of pastor Brunson triggered another wave of TRY sell-off and the USD/TRY pair, which was staying below the 6 mark gained traction and was last seen up more than 5% on the day. The daily fall of the Turkish lira weighed on the market sentiment and European equity indices reacted negatively with Germany’s DAX and the UK’s FTSE 100 both losing 0.75% and 0.5% respectively.

In addition to the risk-aversion, a relatively weaker greenback is also making it difficult for the pair to gather strength. At the moment, the DXY is down 0.13% on the day at 96.47. Later in the session, markets will be focused on Wall Street’s performance and the only data from the U.S. will be the UoM’s Consumer Confidence Index.

Technical levels to consider

Supports for the pair align at 0.9925 (100-DMA), 0.9865 (Jul. 31 low) and 0.9830 (Jun. 5 low). On the upside, resistances could be seen at 1.0000 (parity level), 1.0065 (Jul. 13 high) and 1.0100 (psychological level).