The USD/CHF pair extended Wednesday's reversal move from 1.0140 level and traded with bearish bias for the second consecutive session.
Persistent greenback weakness has been the key factor that drove the pair back towards 100-day SMA support near the 1.0030 region. Thursday's comments from the US Treasury Secretary Steve Mnuchin failed to provide any details over Trump's proposed tax reforms and diminished prospects of a rate-hike move at the Fed's upcoming meeting in March.
Fading optimism led by Trump's promised pro-economic policies and uncertainty over the timing of next Fed rate-hike action continued to weigh on the greenback, with the key US Dollar Index now placed at daily lows near 100.70 region.
Meanwhile, the prevalent risk-off mood, as depicted by a sell-off in equity markets, is lending support to the Swiss Franc’s safe-haven appeal and collaborating to the pair’s offered tone.
With today’s downfall, the pair has now reversed all of its gains recorded during the early part of the week and hence, a follow through selling pressure below weekly lows support near 1.0010 level would turn the pair vulnerable to extend the ongoing reversal move further in the near-term.
Next on tap would be the US economic docket, featuring the release of new home sales data and Revised UoM Consumer Sentiment index, due in a short while from now.
Technical levels to watch
Follow through weakness below 1.0030 level (100-day SMA) could get extended towards 1.0010 level below which the pair is likely to continue sliding towards 0.9970-60 horizontal support. On the flip side, 1.0060 area might act as immediate resistance, which if cleared could lift the pair back towards 1.0100 handle ahead of multi-week tops resistance near 1.0140 area.
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