USD/CHF reverses sharply from 2-week highs, drops below 0.9640

The Swiss franc rose sharply against the US dollar during the last three hours. USD/CHF failed to break 0.9700 and lost momentum. Following the release of emails from Donald Trump Jr. regarding the campaign, the greenback lost momentum, particularly against European currencies. USD/CHF accelerated the decline. 

Donald Trump Jr. tweeted out e-mail chain that promised info on Clinton 

US Senate Intelligence Committee requesting documents from Trump Jr. - Reuters

The pair recently bottomed at 0.9627, just a few pips below Monday’s lows. Price remains near the 0.9630 area and a clear break below could clear the way to more losses. From daily highs the pair lost more than 50 pips, making a reversal. The next support could be seen at 0.9620 (Jun 2 low), 0.9595 (Jul 7 low), 0.9575 (Jul 3 low) and 0.9551 (2017 low).

USD/CHF: another rejection above 20-day SMA

For the third time in a week, USD/CHF was rejected from above the 20-day simple moving average. Today the US dollar lost strength after hitting 0.9693, the strongest since June 27. One more time price failed to hold above 0.9660. 

In order to gain support for a bullish extension, USD/CHF needs to post a daily close above 0.9660/70.  As long as it remains below, risks would be tilted to the downside.