USD/CHF breaks below 0.9600 handle to hit a fresh 8-week low

After a brief pause and a failed recovery attempt on Wednesday, the USD/CHF pair resumed its downward trajectory and dropped back below 0.9600 handle to hit a fresh 8-week low.

In the aftermath of Wednesday's FOMC meeting minutes, which was considered as dovish by the markets as it failed to provide any clues over the timing of next Fed rate-hike action, the greenback remained well-offered across the board. Immediately after the release, the pair erased all of its recovery gains to 0.9658 to end the day with marginal loss and is now extending its downslide for fifth straight session.

Today's US economic calendar, which features the release of weekly jobless claims, Philly Fed Manufacturing index and leading indicator, would now be looked upon for fresh impetus and for any immediate short-term respite for the US Dollar bulls.

Technical levels to watch

On a sustained weakness below 0.9600 handle, the pair is likely to aim towards testing June 23 lows support near 0.9520 region, below which the downward trajectory is likely to get extended towards a multi-month lows support near 0.9445-40 region touched in May.

Meanwhile on the upside, any attempts of recovery might now confront immediate resistance near session high level at 0.9615-20 region, which if cleared might assist the pair to extend the bounce back further towards 0.9640 resistance.