USD/CHF drops to lows near 0.9850

The renewed selling bias around the greenback has prompted USD/CHF to come back from overnight peaks near the 0.9900 handle.

USD/CHF supported near 0.9850 so far

The pair is extending its consolidative theme from last week, although it still remains unable to break above the critical 0.9900 barrier on a sustainable basis in spite of the generalized bid tone around the dollar in past sessions.

On the US data front, the Dallas Fed manufacturing index is only due later, while in Switzerland SNB’s T.Jordan has reiterated that the franc remains significantly overvalued and that the central bank could cut rates further if necessary.

USD/CHF key levels

The pair is now losing 0.18% at 0.9852 facing the next support at 0.9818 (20-day sma) followed by 0.9760 (low Jul.14) and finally 0.9684 (low Jul.5). On the other hand, a breakout of 0.9908 (high Jul.21) would expose 0.9960 (high May 30) and then 1.0098 (high Mar.10).