USD/CHF ignores modest USD recovery, drops back closer to yearly lows

Having touched a session high level of 0.9560, the USD/CHF pair ran through some fresh offers and is now headed back to one-year lows touched in the previous session.

Currently trading around 0.9530 level, testing session lows, the pair drifted into negative territory for the fourth consecutive session and has failed to benefit from a modest US Dollar recovery. 

In absence of any fresh fundamental development, the pair's latest leg of slide since early European session could be attributed to the prevalent cautious sentiment around equity markets, which was seen boosting the Swiss Franc's safe-haven appeal.

It would now be interesting to see if the pair is able to defend yearly lows or continues with its near-term depreciating move even further below the key 0.9500 psychological mark. Later during the NA session, the US economic docket would now be looked upon for some immediate respite for the bulls.

Technical levels to watch

A follow through weakness below 0.9525 level is likely to accelerate the slide towards the 0.95 handle, below which the downfall could get extended towards 2016 yearly lows support near 0.9445 level. 

On the upside, any recovery move beyond mid-0.9500s is likely to confront resistance near 0.9590-0.9600 region, above which a bout of short-covering could lift the pair back towards 0.9670-75 strong horizontal support.