USD/CHF flirting with multi-month lows near 0.95 mark

The USD/CHF pair built on previous session's sharp reversal move and has now moved on the verge of decisively breaking below the key 0.9500 psychological mark.

The pair on Thursday turned sharply lower and tumbled over 125-pips from session tops beyond the 0.9600 handle, amid broad based US Dollar sell-off primarily led by the post-ECB sharp upsurge in the EUR/USD major. The selling pressure further aggravated on persistent worries over the US President Donald Trump’s campaign ties with Russia and the pair tumbled to 14-month lows, marginally below the key 0.95 psychological mark.

Meanwhile, a fresh wave of global risk aversion trade, which tends to drive investors towards traditional safe-haven currencies, including the Swiss Franc, further collaborated to the weaker tone surrounding the major on the last trading day of the week.

Today's US economic docket lacks any fresh fundamental drivers. Hence, the pair remains at the mercy of broader market risk sentiment and the USD price dynamics. 

   •  USD/CHF now looks to 0.9444 – Commerzbank

Technical levels to watch

A strong follow through selling pressure below the 0.9500 handle has the potential to continue dragging the pair further towards May 2016 lows support near 0.9445 level en-route the 0.9400 round figure mark. On the upside, any recovery attempts now seem to confront immediate resistance near 0.9525-30 region, above which the pair could make a fresh attempt to reclaim the 0.9600 handle and head towards testing its next hurdle near mid-0.9600s.