USD/CHF slips towards 100-DMA

The USD/CHF came in under renewed selling pressure during the first half of the NA session as the greenback weakened against major rivals. At the moment, the pair is down 0.09% at 1.0080, and just a tad above the 100-DMA at 1.0068. 

The US Dollar Index failed to rise above the 101.20 during the European session and lost composure as the American traders hit the desk. Although no fundamental catalyst was seen behind that recent fall, the fact that the 10-year U.S. Treasury yield is down 0.7% on the day may have increased the pressure on the dollar. As of writing, the DXY is down 0.2% at 100.88.

On the other hand, the US stock indexes are holding on to their daily gains after having a flat start to the day and is limiting any further losses by making the safe haven CHF less desirable. Later during the session, Fed Chair Janet Yellen will be giving a speech at Gerald R. Ford School of Public Policy: Policy Talk Series of the University of Michigan. Last week's FOMC minutes and the latest statements from the FOMC members suggested that the Fed is looking to shrink its balance sheet as the next step in their tightening path. However, how that plan will affect the rate hike outlook is still not clear and the participants will be looking for clues on that matter.

Technical levels to consider

A break below 1.0067 (100-DMA) could open the doors towards 1.0000 (psychological level) and 0.9960 (200-DMA). On the upside, technical resistance could be seen at 1.0100 (psychological level), 1.0160 (Mar. 9 high) and 1.0200 (psychological level/Jan. 9 high).

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