USD/CHF tumbles to fresh weekly lows, closer to 0.95 handle

The USD/CHF pair faced rejection just ahead of the 0.9600 handle and dropped to fresh one week low level of 0.9515 during early European session.

The pair has now broken below its immediate strong horizontal support near 0.9525 area amid some renewed greenback selling pressure. 

In fact, the key US Dollar Index has now dipped below the 92.00 handle, amid weaker tone around US Treasury bond yields and despite a deal to extend the US debt ceiling until mid-December, and has been the sole driver of the pair's slide over the past couple of hours. 

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Meanwhile, persistent geopolitical tension remained supportive for the Swiss Franc's safe-haven appeal, with the pair struggling to register any meaningful recovery from lower levels. 

The ECB-led volatility in the market might influence the pair's movement on Thursday amid relatively lighter US economic docket, featuring the only release of weekly jobless claims. 

Technical levels to watch

A follow through weakness below 0.9525 level could accelerate the fall towards the key 0.95 psychological mark, below which the pair is likely to head back towards multi-month lows support near the 0.9435-30 region.

On the upside, the 0.9600 handle now becomes immediate hurdle, which if cleared might trigger a short-covering bounce towards 0.9625-30 zone ahead of mid-0.9600s.