USD/CHF flirting with daily lows below mid-0.9800s, Fedspeak in limelight

The USD/CHF pair finally broke through the European session trading range and refreshed session lows near 0.9835 region amid bearish greenback consolidation. 

Despite of the better-than-expected release of goods trade balance, wholesale inventories and Case Shiller HPI from the US, fading optimism around the US President Donald Trump's pro-growth economic policies continues to weigh on the greenback. 

Meanwhile, a fresh wave of downslide in the US treasury bond yields failed to extend support to the greenback's tepid recovery move, with the key US Dollar Index reversing early tepid recovery gains and has been one of the key factors responsible for the pair's bearish bias for the third consecutive session. 

Moreover, a slight deterioration in trading sentiment around equity markets, with the US stock futures pointing to a mildly weaker start, further boosted the Swiss Franc's safe-haven appeal and  seems to have collaborated to the pair's bearish slide back closer to 4-1/2 month lows touched on Monday.

Today's US economic docket also features the release of CB Consumer Confidence Index for March and would be looked upon for fresh impetus ahead of speeches from various FOMC members, including the Fed Chair Janet Yellen. 

Technical levels to watch

Bears would be eyeing for a retest of multi-month lows support near 0.9815 region, below which the pair is likely to accelerate the slide towards 0.9775 support ahead of 0.9735-30 horizontal support. On the upside, 0.9865-70 area (session tops) now becomes immediate resistance, which if cleared decisively might trigger a short-covering rally towards filling the weekly bearish gap and reclaim the 0.9900 handle ahead of testing the very important 200-day SMA support turned resistance near 0.9920 region.