• Sliding US bond yields add to USD selling.
• Risk-on mood fails to lend any support.
• Focus remains on US durable goods/FOMC minutes.
The USD/CHF pair extended overnight retracement from an important supply zone near the 0.9945 region and inched back closer to the lower end of its 5-day old trading range.
The pair remained under some selling pressure for the second consecutive session and was being weighed down by persistent US Dollar selling bias, led by the ongoing flattening of the US Treasury bond yield curve.
Even the prevalent risk-on environment, which tends to dent demand for traditional safe-haven currencies, including the Swiss Franc, did little to lend any support, with the USD price dynamics acting as an exclusive driver of the pair's slide back below the 0.9900 handle.
On the economic data front, the release of US durable goods orders would now be looked upon for some immediate respite for the USD bulls. The key focus, however, would remain on the FOMC meeting minutes, which might now provide the required momentum to break through the near-term trading range.
Technical levels to watch
Immediate support is pegged near the 0.9875-70 region, which if broken is likely to accelerate the slide towards 0.9845 intermediate support en-roue the very important 200-day SMA support near the 0.9810 region.
On the upside, any sustained up-move beyond the 0.9900 handle might continue to confront fresh supply near the 0.9935-45 region, above which a fresh bout of short-covering could lift the pair back toward the parity mark.
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