USD/CHF under heavy pressure, 0.98 in sight

A fresh wave of global risk-aversion hit the markets as the NA session went underway. The greenback – in terms of the US Dollar Index – remained under pressure in the early trading hours of the session and hit the daily low at 99.70, while the USD/CHF fell to 0.9820, the lowest since the first week of November. 

President Trump's failed attempt to dismantle Obamacare on Friday took a toll on stock markets with most major European indices losing close to 1% on the day. Investors are worried that Trump will struggle to fulfill his promises on more relevant subjects such as the tax reform or the increased spending on infrastructure.

• US: Major congressional defeat for the Trump administration - Rabobank

Furthermore, US stocks are poised to open lower on Monday following last week's poor performance which led to the biggest weekly loss of the year. The Swiss Franc could continue to find demand as a traditional safe-haven for the rest of the trading day since there are no macro events scheduled that could change the general market sentiment.

• US: Questions raised about much of the administration's economic program – BBH

Technical outlook

As of writing, the pair is down 0.88% at 0.9825. On the daily graph, the RSI is sitting at 27, the lowest level since April, and is showing oversold conditions. 0.9800 (psychological level) could be the first technical support for the pair followed by 0.9730 (Nov. 7 low) and 0.9680 (Nov. 4 low). On the upside, a recovery above 0.9860 (Jan. 31 low) could aim for 0.9945 (200-DMA) and 1.0000 (psychological level).