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USD/CHF breaks below 200-DMA, lowest since Oct. 20

   •  Persistent USD drags for third straight session.
   •  Safe-haven demand adds to downward pressure.
   •  Below 200-DMA for the first time since Oct. 20.

The USD/CHF pair remained under some selling pressure for the third consecutive session on Thursday and retreated back below the very important 200-day SMA.

The pair extended overnight bearish break below a 4-day old trading range and has now retreated around 150-pips from an important supply zone, near mid-0.9900s, touched on Tuesday. 

Dovish FOMC meeting minutes, revealing policymakers' concern over stubbornly low inflationary pressure, continued exerting some downward pressure on the US Dollar

Adding to this, a mildly cautious sentiment around European equity markets further benefitted the Swiss Franc's safe-haven appeal and collaborated to the pair's downslide through the early NA session. 

It, however, remains to be seen if bears are able to maintain their dominant position or the pair is able to find some buying interest at current levels amid holiday-thinned liquidity conditions.

Technical levels to watch

A convincing break below the 0.9800 handle is likely to accelerate the slide towards 0.9760 horizontal level en-route 100-day SMA support near the 0.9720 region. 

On the upside, 0.9825 level now seems to have emerged as an immediate hurdle, which if cleared could lift the pair beyond mid-0.9800s towards its next resistance near the 0.9875-80 region.
 

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