USD/CHF sinks to fresh session lows, around mid-0.9400s

The greenback selling pressure remains unabated, with the USD/CHF pair sinking to fresh session lows near mid-0.9400s during the early European session.

The greenback has been losing ground since Friday after the much-awaited speech by the Fed Chair Janet Yellen disappointed market participants expecting some hawkish comments. 

The sentiment took an additional hit on concerns over the economic damages caused by Hurricane Harvey, with the key US Dollar Index sinking below the 92.00 handle to its lowest level since January 2015.

   •  US Dollar weaker, sinks below 92.00

Adding to this, the global flight to safety, triggered by N. Korea's fresh ballistic missile test, further benefitted the Swiss Franc and collaborated to the pair's heavily offered tone on Tuesday.

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Meanwhile, possibilities of some big stops being triggered on a decisive break below the key 0.95 psychological mark could have been an important factor behind the pair's sharp fall of around 80-pips over the past couple of hours or so.

Next on tap would be the release of CB Consumer Confidence Index from the US, which although is unlikely to act as a game changer but might still provide some opportunities for short-term traders.

Technical levels to watch

A follow through selling pressure has the potential to drag the pair below yearly lows towards the next round figure mark support near the 0.9400 handle ahead of July 2015 lows support near 0.9330 area. On the upside, recovery attempts above 0.9475 level might continue to confront fresh supply near the 0.95 handle, above which a bout of short-covering could lift the pair back towards 0.9555-60 horizontal resistance.