USD/CHF: Swiss franc climbs higher as Oil sell-off extends

The USD/CHF pair met fresh offers in early Europe and dropped further below 0.97 handle, on the back of deteriorating risk conditions as the oil prices extend the slump.

USD/CHF testing lows near 0.9650

Currently, the USD/CHF pair trades -0.20% lower at 0.9658, hovering within a striking distance of fresh session lows struck at 0.9652 some minutes ago. The major is seen accelerating to the downside as the demand for traditional safe-havens such as the CHF, picks up pace amid renewed bout of selling witnessed in the oil markets. The extension of sell-off in the oil prices post-European open triggered a renewed risk-aversion wave into markets and thus, provided fresh impetus to the safety assets.

Moreover, the US dollar also turned on the back foot against its major competitors last minutes, adding to the downbeat sentiment surrounding USD/CHF. Looking ahead, the major will keep an eye on the broader market sentiment as the trading calendar remains data-quiet for today.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9700 (round number) and above which it could extend gains to 0.9766 (50-DMA). To the downside, immediate support might be located at 0.9619/06 (20 & 5-DMA) and below that 0.9540 (Apr 13 Low).