USD/CHF Slips for Fourth Straight Day, Might Hold 0.9600 Level
Disappointing May jobs report continue to weigh on the US Dollar with the USD/CHF pair dropping to monthly low level of 0.9624 despite of weaker-than-expected Swiss CPI print.
The Swiss Franc remains an outperformer as compared to other European counterparts and continues to benefit from safe-haven flows on uncertainty surrounding the outcome of EU referendum in the UK on June 23.
Even weak Swiss CPI reading failed to provide any respite for the USD/CHF bulls and the USD/CHF pair extended its slide further below 0.9700 handle. Earlier during the day, CPI data for the month of May declined for the first time in four months and fell short of consensus estimates of 0.2% rise and came-in at 0.1% m-o-m.
Moreover, renewed USD selling pressure, on the back of dimming prospects of an imminent Fed rate hike in June/July, also seems to drag the USD/CHF pair lower.
From technical perspective, hourly (h1 & H4) RSI readings are already pointing towards near-term oversold condition, thus increasing the possibilities of a near-term pull-back.
Technical levels to watch
On the immediate downside, further downfall now seems to be restricted at 0.9615-0.9600 handle and is likely to be supported by near-term oversold conditions as depicted by daily RSI reading.
Meanwhile on the upside, recovery momentum is likely to gain traction above 0.9650 immediate resistance that could assist the pair to head back towards 50-day SMA support break, not turned strong resistance, near 0.9720 region.