USD/CHF flirts with session lows, around 0.9500 mark
- USD/CHF came under some renewed selling pressure on the first day of a new week.
- Fresh coronavirus jitters benefitted the safe-haven CHF and exerted some pressure.
- A broad-based USD weakness added to the intraday selling bias surrounding the pair.
- Strong gains in the US equity futures might help limit any deeper losses, at least for now.
The USD/CHF pair edged lower through the early European session and momentarily slipped below the key 0.9500 psychological mark, or fresh daily lows in the last hour.
The pair met with some fresh supply on the first day of a new trading range and reinforced a stiff resistance near the 0.9525-30 region. The downtick was sponsored by a combination of factors, including the emergence of some US dollar selling and growing market worries over the second wave of coronavirus infections.
In fact, the World Health Organization (WHO) on Sunday reported a record increase in the number of new COVID-19 cases globally and dampened prospects for a sharp V-shaped economic recovery. This, in turn, weighed on investors' sentiment and provided a modest lift to traditional safe-haven currencies, including the Swiss franc.
On the other hand, the greenback failed to capitalize on its early uptick, instead witnessed an intraday turnaround from three-week tops. A broad-based USD weakness further contributed to the pair's weaker tone, albeit strong gains in the US equity futures helped limit any deeper losses for the USD/CHF pair, at least for now.
Even from a technical perspective, the pair has been oscillating in a range held over the past one week or so. This makes it prudent to wait for a sustained break in either direction before traders start positioning for the USD/CHF pair's near-term trajectory.
Monday's US economic docket features the only release of Existing Home Sales data, which might influence the USD price dynamics and provide some short-term trading impetus later during the early North American session.
Technical levels to watch