USD/CHF remains on the defensive below 0.9700 handle
|- USD/CHF comes under some renewed selling pressure on Monday.
- Heightened geopolitical tensions benefitted CHF’s safe-haven status.
- Some renewed USD selling bias further collaborated to the downfall.
The USD/CHF pair remained under some selling pressure through the mid-European session on Monday and refreshed daily lows, below the 0.9700 handle in the last hour.
A combination of negative forces failed to assist the pair to capitalize on its attempted intraday recovery move, rather prompted some fresh selling at higher levels. The pair snapped two consecutive days of winning streak and for now, seems to have stalled its recent bounce from over 15-month lows.
USD/CHF weighed down by a combination of factors
The prevalent risk-off mood – amid growing market concerns over a major conflict in the Middle East – continued benefitting the Swiss Franc's perceived safe-haven status. This coupled with some renewed US dollar selling bias further collaborated to the pair's intraday slide of around 30-35 pips.
Fears over the fallout from the US killing of Qassem Soleimani, a leading Iranian military commander, intensified on Monday after Iran said it would no longer abide by the 2015 nuclear deal. This comes on the back of the US President Donald Trump's warning of major retaliation if Iran hits back.
The downside, however, remained cushioned, at least for the time being, as investors refrained from placing fresh bets amid absent relevant market-moving economic releases from the US. Hence, it will be prudent to wait for some follow-through selling before positioning for any further depreciating move.
Technical levels to watch
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