USD/CHF tumbles to 7-week low before recovering to 0.9550

Following a sharp slide to its lowest level since early May, the USD/CHF pair has managed to bounce-off session lows to currently trade near mid-0.9500s.

Broader US Dollar weakness was the key reason for the pair's sharp slide from the vicinity of 0.9600, session high level touched during Asian trading session. 

Global financial markets have been cheering the recent poll results that showed that support for the UK to remain with the EU, during the critical Brexit vote, has been increasing. And as the voting got underway on Thursday, a fresh wave of US Dollar selling might have triggered some big stop-losses, taking the USD/CHF pair spiraling lower to 0.9520 region.

Markets now look forward to the final result of the crucial referendum vote in the UK. In the meantime, traders will take cues from today economic data from the US - that includes weekly jobless claims, new home sales and flash manufacturing PMI data, in order to grab some short-term trading moves.

Technical outlook

A team of analysts at AceTrader notes, "as indicated 0.9561 low was accompanied by 'bullish convergences' on hourly indicators, steep fall below there is unlikely to be seen n risk wud increase of a much-needed correction. On the upside, only abv 0.9956 would signal rise fm 0.9444 to retrace MT fall fm 2015 top at 1.0330 has resumed instead n extend to 0.9992 (61.8% r)."

"Below 0.9551 would extend weakness to 0.9534/42 n later 0.9498."