USD/CHF flirting with lows, below mid-0.9600 amid notable USD weakness

Haresh Menghani FXStreet

• USD struggles to build on overnight strong rebound.
• Surging US bond yields fail to lend any support.
• US data might provide some trading opportunities.

Having posted a session high level of 0.9666, the USD/CHF pair came under some selling pressure and eroded part of previous session's strong recovery gains.

Despite a strong follow-through upsurge in the US Treasury bond yields, renewed US Dollar weakness was seen as one of the key factors weighing on the major through the early European session.

Even the prevalent positive trading sentiment around European equity markets, which tends to dent the Swiss Franc's safe-haven appeal did little to lend any support and assist the pair to build on overnight recovery move from 4-month lows.

With the USD price dynamics turning out to be an exclusive driver of the pair's momentum, traders now look forward to the US economic releases - housing market data, Philly Fed Manufacturing Index and the usual initial weekly jobless claims, for some fresh impetus.

Technical levels to watch

Currently trading around the 0.9635-30 region, testing session lows, a follow-through weakness has the potential to continue dragging the pair back towards the 0.9600 handle.

On the upside, sustained move back above 0.9655-60 area might lift the pair even beyond the 0.9700 handle towards its next hurdle near the 0.9720-30 region.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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