USD/CHF finds support near 0.99, starts to recover losses

• CHF gathers strength on negative risk sentiment.
• Boosted by robust data, DXY erases daily losses.
• US Stocks start the day lower following yesterday's impressive rise.

The USD/CHF pair came under a renewed selling pressure in the early NA session on a broad-based risk aversion and refreshed its daily low at 0.99. However, the pair started to consolidate its losses as the greenback extended its recovery gains. At the moment, the pair is trading at 0.9915, still down 0.25% on the day.

Earlier in the session, Reuters reported that Han Tae Song, North Korea’s ambassador to the United Nations, in an exclusive interview said that North Korea wouldn't make any negotiations with the United States as long as the hostile policy against them continued. Rising geopolitical concerns after that report hurt the risk appetite and increased the demand for safer assets such as the CHF. In the meantime, reflecting the weak market sentiment, major equity indexes started the day lower with the Dow Jones Industrial Average and the S&P 500 indexes dropping 0.33% and 0.26% at the time of writing. 

• North Korea rules out negotiations with Washington - Reuters

On the other hand, after erasing yesterday's gains and falling to 93.40, the US Dollar Index gained some traction in the NA session after the macroeconomic data from the U.S. came better than market estimates. On a monthly basis, housing starts and building permits increased by 13.7% and 5.9% respectively. At the moment, the DXY is at 93.75, down 0.1% on the day. 

• US: Building permits in October were at 1,297,000, 5.9% above September

Technical levels to consider

Despite this recent fluctuation, the RSI indicator on the daily graph remains near the 50 mark, pointing to a near-term neutral price action. On the upside, the initial resistance aligns at 0.9960 (20-DMA) ahead of 1.0000 (psychological level) and 1.0040 (Oct. 27 high). On the downside, supports could be seen at 0.9900 (psychological level/daily low), 0.9840 (50-DMA) and 0.9765 (200-DMA).