USD/CHF Suppressed Below 0.9600 at Fresh 5-Week Low
The US Dollar continues to face selling pressure while the Swiss Franc is supported by safe-have flows on uncertainty surrounding the UK-EU referendum, with the USD/CHF pair now trading below 0.9600 handle.
With a sudden turnaround in the sentiment surrounding the possibilities of an immediate Fed rate-hike in June/July coupled with 'Brexit' worries, the Swiss Franc remains an outperformer as compared to other European counterparts.
The pair on Wednesday shrugged-off weaker-than-expected Swiss CPI figure that resurfaced deflationary concerns, and continued drifting lower to a fresh 5-week low level. The pair is now down over 450-pips from nearly 3-month high level of 0.9956 touched in the previous week and is trading well below 0.9600 handle for the first time since May 5.
Technical levels to watch
Sustained weakness below and a subsequent break below 0.9568 (May 5 low) is likely to increase its vulnerability to continue drifting lower towards May daily closing lows support near 0.9550-45 area.
Meanwhile on the upside, recovery momentum above 0.9600-15 resistance is likely to gain traction only above 0.9650 level, beyond which the pair could head back towards 50-day SMA support break, not turned strong resistance, near 0.9720 region.