USD/CHF quickly reverses a dip to sub-0.9900 level, 3-1/2 week lows
| • Risk-off mood boosts CHF’s safe-haven demand.
• Resurgent USD demand helps ease the bearish pressure.
• Focus remains on the release of FOMC meeting minutes.
The USD/CHF pair continued losing ground on Wednesday and momentarily dipped below the 0.9900 handle in the last hour, albeit quickly recovered thereafter.
The pair extended its retracement slide from one-year tops, touched earlier this month, and was further weighed down by reviving safe-haven demand for the Swiss Franc.
Global risk-aversion was evident from a weaker opening across European equity markets and was further reinforced by a sharp slide in the US Treasury bond yields.
However, a fresh wave of US Dollar upsurge helped ease the bearish pressure, at least for the time being, with the pair quickly recovering around 30-pips from session lows to currently trade nearly unchanged for the day, around the 0.9925 region.
Investors also seemed reluctant to place aggressive bets ahead of today's important release of the latest FOMC meeting minutes, which might influence the USD price-dynamics and eventually provide a fresh directional impetus.
Technical levels to watch
Any further up-move might confront immediate resistance near mid-0.9900s, above which the pair is likely to aim back towards reclaiming the parity mark. On the flip side, the 0.9900 area might continue to act as an immediate support, which if broken might turn the pair vulnerable to accelerate the slide towards its next support near the 0.9845 region.
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