USD/CHF slides further below 0.9000 mark, lowest level since February 24

The USD/CHF pair weakened further below the key 0.9000 psychological mark and dropped to the lowest level since February 24 during the mid-European session.

The pair prolonged its recent bearish trajectory and witnessed some follow-through selling on the first day of a new trading week. This marked the fourth consecutive day of a negative move and was exclusively sponsored by the prevalent bearish sentiment surrounding the US dollar.

The USD struggled to capitalize/preserve its modest intraday gains, instead met with some fresh supply and dropped to near two-and-half-month lows amid dovish Fed expectations. Friday's dismal US monthly jobs report reaffirmed that the Fed will keep interest rates low for a longer period.

The headline NFP showed that the US economy added only 266K jobs in April, far lower than consensus estimates pointing to a reading of nearly one million. Adding to this, the previous month's reading was revised down and the unemployment rate edged higher to 6.1% from 6.0% in March.

Meanwhile, the underlying bullish tone in the financial markets, which tends to weigh on the safe-haven Swiss franc, also did little to lend any support to the USD/CHF pair. That said, slightly oversold conditions on short-term charts might help limit the downside, at least for now.

There isn't any major market-moving economic data due for release from the US on Monday. Hence, the USD price dynamics will continue to play a key role in influencing the USD/CHF pair. Apart from this, the broader market risk sentiment will also be looked upon for some trading opportunities.

Technical levels to watch