USD/CHF slammed to 0.9800 neighborhood

The USD/CHF pair remained heavily offered and has now dropped to a fresh 3-week low level near 0.9820-15 region ahead of US manufacturing PMI print.

The US Dollar came under selling pressure across the board after the latest ABC News/Washington Post tracking poll result showed that 46% voters supported Trump as compared to 45% supporters for Clinton. The latest poll results could be in reaction to the Friday's news of the FBI probe on Clinton's use of a private server while secretary of state. Hence, investors would be keenly awaiting for further details on FBI probe over Clinton's email and how could that effect the US presidential election this week. 

In the meantime, the release of US ISM manufacturing PMI print for October, which is expected to tick higher to 51.7 from September's 51.5, would be looked upon for some respite. Investors' attention this week, however, will remain glued to the Fed monetary policy decision on Wednesday and Friday's monthly jobs report (NFP), which would help them to determine the pair's next leg of directional move.

Technical levels to watch

A follow through selling pressure below 0.9800 handle, also coinciding with 50-day SMA) is likely to drag the pair further towards retesting 200 and 100-day SMAs confluence support near 0.9780-70 region. On the flip side, any recovery attempts might now confront immediate resistance near 0.9845-50 region, which if cleared might trigger a fresh bout of short-covering rally immediately towards 0.9900 strong hurdle.