USD/CHF approaches 0.95, down 1% on day

The USD/CHF pair, which plummeted to its lowest level since June 23, 2016, at 0.9524, is recording its sharpest daily fall in July on Tuesday, losing 1%, or 100 pips, at 0.9530 as of writing.

Without a doubt, the pair's price action on Tuesday is being driven by the greenback sell-off that started in the early Asian session after political developments in the U.S. revealed that the Trump administration was on the verge of failing, once again, to repeal the ObamaCare. Most recently, Republican Senators Susan Collins and Shelley Moore Capito said that they were going to vote "no" for a straight repeal of Obamacare without a replacement plan. At the moment, the US Dollar Index is at 94.32, losing 0.63% on the day. 

• US Dollar keeps falling… 94.00 on the cards?
• Two Republican Senators say "no" to straight Obamacare repeal - Reuters

Moreover, following heavy losses witnessed in the European equity indexes, Wall Street started the day under pressure as well with the Dow Jones Industrial Average losing 0.4% and the S&P 500 dropping 0.15%, suggesting that investors are not interested in risky assets. Even if the greenback starts to recover, weak risk appetite could keep the demand high for the safe haven CHF, making it likely for the pair to continue its downfall.

Technical outlook

Despite today's big losses, the RSI on the daily graph hasn't reached the oversold area yet, signaling that the bearish momentum is still present. However, 0.9500 (psychological level) could be a tough support to break ahead of 0.9440 (May 3, 2016, low) and 0.9400 (psychological level). On the upside, resistances align at 0.9620 (20-DMA), 0.9700 (psychological level/Jul. 14 high) and 0.9820 (100-DMA).