USD/CHF plunges over 100-pips to 0.9600 neighborhood

The US Dollar sell-off remains unchecked, with the USD/CHF pair plummeting over 100-pips from Monday's closing level to nearly two-month low. 

Having posted a session low at 0.9618, the pair has retraced few pips and is currently trading around 0.9625 region, ahead of US CPI, housing starts and industrial production data later during NA trading session, which would be looked upon to provide some respite to the greenback.

Recent slew of US economic data has been underpinning expectations that the Federal Reserve is unlikely to raise interest rates in 2016. Hence, Wednesday's release of FOMC meeting minutes will now provide fresh cues over the Federal Reserve’s monetary policy outlook and give clear direction for the greenback’s near-term momentum. 

How strong has the move been?

The FXStreet OB/OS Index is reflecting extremely oversold hourly conditions, while the FXStreet Trend Index is slightly bearish. Currently RSI is at 15.21, down from the last hourly print at 18.98, with ADX at 60.79, up from its previous close at 48.17.

Daily RSI sits at 44.73, in neutral territory. Looking to momentum indicators, the hourly 200 SMA is currently at 0.9732, down from the last close at 0.9764 and declining. Over the past 20 days, the exponential average closing price is 0.9773, and trending lower.

Price levels to be considered

We can see next resistance ahead at 0.9659 (Daily Classic S3), 0.9686 (Daily Classic S2) and 0.9689 (Weekly Classic S1). Support below can be found at 0.9618 (Daily Low), 0.9552 (Weekly Classic S3), 0.9528 (YTD Low), 0.9306 (Annual Low) and 0.8565 (3 Year Low).