USD/CHF dives to multi-day lows, below 0.9700 mark

The USD/CHF pair continued losing ground through the early North-American session and refreshed daily lows, below the 0.9700 mark in the last hour.

Having faced rejection near the 0.9800 round-figure mark, the pair witnessed a dramatic turnaround from the vicinity of the very important 200-day SMA and the steep fall was solely sponsored by broad-based US dollar weakness.

Signs that the coronavirus pandemic may be reaching its peak in Europe and the United States triggered some aggressive USD long-unwinding trade, with bulls failing to gain any respite from surging US Treasury bond yields.

Meanwhile, the sharp intraday slide to multi-day lows seemed rather unaffected by a strong follow-through rally in the global equity markets, which tends to undermine demand for safe-haven currencies, including the Swiss franc.

Apart from this, possibilities of some short-term trading stops being triggered below 100-hour SMA, around the 0.9735 region, aggravated the intraday bearish pressure and contributed to the ongoing downfall to multi-day lows.

It will now be interesting to see if the pair is able to attract any buying at lower levels as investors assess the impact of the pandemic on the global economy, which should continue to benefit the USD's status as the global reserve currency.

Technical levels to watch