USD/CHF rejected from 0.9770 level, dips into negative territory

The USD/CHF pair failed to extend its bullish momentum beyond Friday's two-week high level of 0.9770 and has now turned absolutely flat from Friday's closing level of 0.9755.

The pair lost traction after attempting a break-out beyond 0.9770 during the European session and reversed sharply during pre NY trading session. Also on Friday, the pair gave-up some of its gains to 0.9770, led by surprisingly strong monthly US retail sales data, to settle near 0.9755 level.

The pair is now replicating Friday's move ahead of Monday’s only important release featuring the US economic calendar, Empire State Manufacturing Index. A subsequent drop below session low level of 0.9741 would open room for further weakness for the pair.

Technical levels to watch

Below day's through, bulls would be eyeing to defend 50-day SMA support near 0.9695-0.9700 handle, below which the pair might turn vulnerable to test last week's lower level support near 0.9665-60 zone.

On the upside, 0.9770 level now seems to have emerged as immediate resistance. Only a sustained move above this immediate resistance might trigger a fresh leg of up-move for the pair, immediately towards 0.9800 handle, which could further get extended towards 100-day SMA resistance near 0.9850 region.