USD/CHF retraces from 0.9900 neighborhood, mildly positive at 0.9875

Although the USD/CHF pair held on to its gains above 200-day SMA, it has failed to build on to its momentum and move back above 0.9900 handle. After making a fresh attempt to reclaim 0.9900 handle, the pair retraced few pips to currently trade around 0.9880-75 band.

After a brief pause on Thursday, the pair resumed with is near-term bullish momentum on Friday but remained capped at 0.9900 strong psychological mark resistance. However, considering that the pair is now sustaining its move above the very important 200-day SMA it seems poised for further appreciating move in the near-term.

Increasing prospects of a Fed rate-hike, later during this year, has kept sentiment around the greenback buoyant and is thus limiting any immediate sharp corrective move for the USD/CHF major. Hence, investors will have a close watch on this week's FOMC announcement on Wednesday in order to evaluate the possibilities of near-term Fed rate-hike and would thus determine the pair's near-term direction. 

Technical levels to watch

On a sustained move above 0.9900 handle, the pair seems all set to climb immediately towards May high resistance near 0.9950 region, above which the pair seems more likely to extend its near-term upward trajectory towards reclaiming parity mark.

Meanwhile, a reversal from current resistance level, and a subsequent break below 200-day SMA support near 0.9850 region, now seems to drag the pair immediately towards 0.9820 support before heading back towards 50-day SMA support near 0.9780-75 region.