USD/CHF slides further below 0.9700 mark, 1-week lows
- USD/CHF met with some fresh supply on Wednesday and dropped to one-week lows.
- A weaker opening in the European equity markets benefitted the safe-haven CHF.
- A modest pickup in the USD demand might limit the fall ahead of FOMC minutes.
The USD remained on the defensive against its Swiss counterpart and pushed the USD/CHF pair to one-week lows, around the 0.9675 region in the last hour.
Following the previous day's range-bound/directionless trading action, the pair came under some fresh selling pressure on Wednesday and retreated further from seven-day tops set on the first day of the week.
The downtick lacked seemed rather unaffected by a modest pickup in the US dollar demand. Traders took cues from a weaker opening in the European equity markets, which underpinned demand for the safe-haven Swiss franc.
This comes on the back of doubts on a potential vaccine for the COVID-19 virus, especially after reports indicated that the US drugmaker Moderna had provided insufficient data to determine the vaccine’s efficacy.
It, however, remains to be seen if the latest leg down marks a near-term bearish break or the pair continues to attract some dip-buying at lower levels amid indications of a goodish rebound in the US equity markets.
Later during the US trading session, the release of the minutes of the latest FOMC meeting will play a key role in influencing the USD price dynamics. This, in turn, might assist traders to grab some short-term opportunities.
Technical levels to watch