USD/CHF Reverses from 50-DMA, Dips Back Below 0.9700 Handle
pair witnessed some profit taking from the vicinity of 50-day SMA
region (0.9725-30 area), dragging the pair to its session low level of
During the week gone-by, the pair managed to recovery sharply from multi-month low levels of 0.9444 to 0.9736, touched earlier during Asian session. The 0.9620-30 area also coincides with 50-day SMA resistance and hence, bulls seem to take some profit off the table after nearly 300-pips recovery from the lowest level since August 2015.
Moreover, Monday's Swiss CPI report that showed inflation rising further by 0.3% during April continued dragging the pair lower during European session. The pair is currently consolidating its move below 0.9700 mark, awaiting for triggers for a fresh directional move.
Technical levels to watch
The 50-day SMA near 0.9725-30 region, remains immediate hurdle to clear. On a sustained move above this immediate resistance, the pair seems all set to extend its recovery trend immediately towards 0.9755-60 intermediate resistance, before heading towards April highs resistance near 0.9797-0.9800 round figure mark.
Alternatively, reversal from its immediate resistance and a subsequent weakness below day's through could drag the pair towards 20-day SMA support near 0.9660 level. A follow through selling pressure below 20-day SMA seems to drag the pair back to the 0.9600 neighborhood support (0.9615-10 support area).