USD/CHF refreshes session lows, around 0.9820 level
• Renewed USD weakness prompts fresh selling.
• Swiss manufacturing PMI betters expectations.
• Reviving safe-haven demand adds to the bearish bias.
Having failed to recover back above mid-0.9800s, the USD/CHF pair met with some fresh supply and refreshed session lows in the last minute.
The pair extended overnight retracement from over one-week lows and was being further weighed down by a weaker opening across European equity markets, which tends to underpin the Swiss Franc's safe-haven appeal.
The latest leg of downfall of around 20-pips in the past hour could also be attributed to a better-than-expected Swiss manufacturing PMI, coming in at 65.1 for November as against consensus estimates pointing to a reading of 62.6.
Meanwhile, a fresh wave of US Dollar selling pressure seems emerged during the early European session and exerted additional downward pressure, dragging the pair to session lows near the 0.9820 region.
It would now be interesting to see if the pair is able to defend the very important 200-day SMA support near the 0.9800 handle or resumes with its prior depreciating move amid renewed concerns over the fate of US tax reform plan.
Later during the NA session, the US ISM manufacturing PMI is due for release, which along with Fedspeaks would now be looked upon for some immediate respite for the USD bulls.
Technical levels to watch
Immediate support remains near the 0.9800 handle, below which the pair is likely to drift below 0.9780-75 zone (Monday's over one-month low) and head towards testing 100-day SMA support near the 0.9735-30 region.
On the upside, 0.9850 level now seems to have emerged as immediate resistance, which if cleared could assist the pair to make a fresh attempt towards reclaiming the 0.9900 handle with some intermediate resistance near the 0.9880 region.