USD/CHF breaks through 100-DMA support

The USD/CHF pair's recovery momentum ran into fresh offers around 0.9765 region, dragging it back into negative territory and break through 100-day SMA support to currently trade at fresh session low around 0.9730 region. 

Despite of its initial attempt to rebound from 100-day SMA, and a subsequent move above 50-day SMA, the recovery lost its momentum as investors sold the greenback on fading prospects of an eventual Fed rate-hike action in 2016.

The pair even failed to benefit from mostly in-line with estimates weekly jobless claims data and unexpected rise in import price index. Investors now look forward to Friday's release of retail sales data and consumer confidence. A disappointing reading on Friday would confirm that the Fed is unlikely to move for the rest of 2016, which would be highly negative for the US Dollar. 

Technical level to watch

From current levels, the pair seems to find some support around 0.9720 level, which if broken seems to accelerate the downslide immediately towards 0.9700 handle. A convincing break below 0.9700 support now seems to open room for a retest of recent swing lows support near 0.9640-35 region.

On the flip side, 50-day SMA near 0.9745 region now become immediate barrier. Recovery momentum above 50-day SMA resistance, leading to strength above session high resistance near 0.9765, seems to immediately boost the pair towards 0.9820 strong resistance area.