USD/CHF bears take charge, tumbles to fresh monthly lows ahead of US GDP

The USD/CHF pair finally moved out of its 3-day old consolidative range and dropped to refresh weekly lows, below the 0.9900 handle. 

The pair's sharp downfall in the past couple of hours lacked any fundamental triggers and hence, the slide could be solely attributed to a fresh wave of greenback selling pressure. In fact, the key US Dollar Index has now dropped back closer to multi-month lows, near mid-98.00s, amid escalating worries over the US relation with N. Korea.

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Meanwhile, the incoming US macro data has also been pointing towards a possible phase of economic slowdown and traders seemed to build on bearish USD positions in anticipation of yet another disappointment from quarterly growth numbers.

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Hence, investors' attention will remain glued to the advance release of US GDP print, later during the day. A dismal growth figure would surely aggravate the bearish sentiment surrounding the major and pave way for continuation of the ongoing downward trajectory.

Technical levels to watch

A follow through weakness below 0.9890 level might continue dragging the pair further towards 0.9855-50 horizontal support en-route late-March lows support near 0.9815 area.

On the upside, any recovery attempt might now confront immediate resistance near 0.9930 region, which is closely followed by the very important 200-day SMA hurdle near mid-0.9900s. A convincing break through 200-day SMA might now trigger a short-covering rally back towards reclaiming the parity mark ahead of 1.0020 horizontal resistance.