USD/CHF plummets below 0.9600 handle to three-week lows

The USD/CHF pair extended last Friday's reversal move from the 0.9700 handle and dropped to three-week lows, below the 0.9600 mark during early European session on Tuesday.

The US President Donald Trump's latest failure to deliver a new healthcare bill sent the US Dollar tumbling to its lowest level since September 2016 and has been one of the key factors weighing on the major for the third consecutive session. 

   •  US: Healthcare failure and tax - ING

Adding to this, a fresh wave of global risk aversion trade, as depicted by prevalent selling bias around European equity markets provided an additional boost to traditional safe-haven currencies, including the Swiss Franc, and further collaborated to the pair's downfall to fresh monthly lows.

With sentiment around the greenback turning highly bearish, a follow through slide below recent multi-month lows now seems a distinct possibility, amid absent fundamental drivers. 

Technical levels to watch

Immediate support remains near 0.9560-55 region, below which the pair is likely to extend the downward trajectory towards 0.9520 level en-route the key 0.95 psychological mark. 

On the upside, the 0.9600 handle now seems to act as immediate resistance, which if cleared could extend the recovery back towards 0.9650 intermediate hurdle ahead of 0.9675 horizontal resistance.