USD/CHF drops sharply to 0.9750 amid fresh USD selling

USD/CHF faced rejection just shy of 0.98 barrier and from there lost nearly 40-pips, to now hover close to the session troughs reached near the mid-point of 0.97 handle.

USD/CHF trades below all major DMAs

Currently, the USD/CHF pair drops -0.13% to fresh session lows of 0.9750, having failed to take-out 0.98 handle.  USD/CHF came under fresh selling pressure after the greenback got sold-into the heavy sell-off witnessed in the US treasury yields. The USD index, which gauges greenback’s relative strength, drops -0.13% to fresh session lows of 95.43.

Moreover, upbeat Swiss ZEW investor sentiment numbers also added to the renewed strength in the Swiss franc, dragging UD/CHF further away from 0.9800 levels. All eyes now remain focused on the SNB monetary policy assessment and a fresh batch of key US macro-economic releases, including the retail sales data, due later on Thursday.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9793/0.9800 (200-DMA/ round figure) and above which it could extend gains to 0.9834 (daily R2). To the downside, immediate support might be located at 0.9706 (Sept 9 low) and below that 0.9650 (psychological levels).