USD/CHF resumes its downslide, back below 0.9750

The USD/CHF pair reversed Wednesday's tepid recovery gains and has now dropped back into negative territory to currently trade back below 0.9750 level.

On Thursday, the pair dropped for third straight session and broke through 100-day SMA important support on uncertainty surrounding the Federal Reserve’s monetary-policy outlook, which has been the key factor weighing on the US Dollar. However, a broad based recovery in the greenback helped the pair to bounce-off lower levels and stall its losing streak.

Investors now look forward to Friday's US release of monthly retail sales, PPI and consumer sentiment data, to reassess possibilities of an eventual Fed rate-hike action for the rest of 2016. 

Technical levels to watch

On a sustained weakness back below 100-day SMA support near 0.9730 region, the pair seems to accelerate the downslide immediately towards 0.9700 handle. Further, a decisive break below 0.9700 support might now open room for a retest of recent swing lows support near 0.9640-35 region.

Meanwhile on the upside, recovery momentum above 0.9760-65 resistance, should assist the pair immediately towards 0.9820 strong resistance area with some intermediate resistance near 0.9800 round figure mark.