USD/CHF struggling near one-month lows, around mid-0.9500s

The USD/CHF pair failed to build on its tepid recovery move and drifted back to the lower end of daily trading range, closer to one-month lows touched late Friday.

The pair came under some intense selling pressure and tumbled around 100-pips from mid-0.9600s following the Fed Chair Janet Yellen's speech, at the much awaited Jackson Hole Symposium, which made no reference to the central bank's monetary policy and disappointed investors hoping for some hawkish comments. 

The greenback held weaker through early European session on Monday, with the key US Dollar Index languishing near YTD lows and doing little to assist the pair to register any meaningful recovery. 

   •  US Dollar Index depressed near 92.50

Adding to this, a fresh wave of global risk aversion trade, as depicted by a negative opening across European bourses provided an additional boost to the Swiss Franc's safe-haven appeal and further collaborated to weaker sentiment surrounding the major. 

In absence of any major market moving economic releases, broader market risk sentiment and the USD price dynamics would continue to act as key determinants of the pair's movement at the start of a new trading week. 

Technical levels to watch

A follow through selling pressure has the potential to continue dragging the pair further towards the key 0.95 psychological mark, which if broken would expose multi-month lows support near mid-0.9400s ahead of the 0.9400 handle. 

On the upside, any recovery attempts might now confront some fresh supply near the 0.9585 region, above which a bout of short-covering could lift the pair beyond the 0.9600 handle towards its next resistance near 0.9615 level.