USD/CHF Turns Neutral at 0.9700 Handle, Awaiting Fresh Triggers
pair turned negative and dropped to test 20-day SMA support near 0.9680
before recovery back above 0.9700 to turn neutral around 50-day SMA.
In absence of any economic releases from the US, the pair witnessed selling pressure on expectations of a spillover effect of US Dollar weakness after BoE announcement. The expectations, however, didn't materialize and shorts rushed to cover their bearish USD bets, lifting the pair back above 50-day SMA region (0.9700 level).
Investors would now look forward to Friday’s important release of US monthly retail sales, which might now turn out to be an immediate fundamental trigger for the pair's near-term direction.
Technical levels to watch
On the upside, 0.9755-60 remains immediate hurdle to clear, which if conquered decisively could lift the pair beyond April high resistance near 0.9800 round figure mark, towards testing its next major resistance near 0.9825-30 area.
On the flip side, bulls might continue to catch a fall towards 20-day SMA support near 0.9680. Only a sustained weakness below this immediate support would negate any intraday bullish bias and drag the pair towards 0.9615-10 support area.