USD/CHF dips below 0.9800 handle on broader USD weakness

Extending its corrective move from Tuesday’s session high level of 0.9937, the USD/CHF pair dropped to 0.9780 region and erased all of its gains registers during the previous trading session before retracing few pips to currently trade around 0.9800 handle.

Mixed US economic data provide little respite for the already weaker US Dollar, which extended its weakening trend on receding Brexit worries and risk-on rally across global equity markets. 

Moreover, trader might be willing to take some profit off the table after the pair's sharp up-surge of nearly 300-pips early Friday's lows touched before the final outcome of the historic UK-EU referendum was announced. 

From technical perspective, the pair has decisively cleared important short-medium-term moving averages (50-day & 100-day SMAs) resistance and hence seems poised for further appreciating move in the near-term.

Technical levels to watch

Bulls would be looking for a move back above Tuesday's closing high resistance around 0.9815-20 region, above which the bullish momentum could lift the pair immediately towards 0.9890-0.9900 round figure mark resistance ahead of May daily closing highs key resistance near 0.9945-50 region.

On the downside, 100-day SMA near 0.9755-50 region seems to act as immediate support. This is closely followed by support at 50-day SMA around 0.9730 region. Bears are likely to wait for sustained weakness below these immediate support levels, which if broken should drag the pair back towards its previous trading range resistance break-point, turned strong support, near 0.9650 level.