USD/CHF drops to session low at 0.9835

A fresh wave of US Dollar selling pressure seems to have emerged in the last hour of trading, with the USD/CHF pair finally breaking on the downside to currently trade at a 5-day low level around 0.9835-40 band.

In the past three weeks, the pair has repeatedly failed to sustain its strength above 200-day SMA and reversed from 0.9900 handle. The pair, although, seems to repeat the price action but is unlikely to witness any sharp slide ahead of the Fed monetary policy decision announcement on Wednesday.

In the meantime, broader sentiment surrounding the greenback might continue to drive the pair until the release of Conference Board's consumer confidence index and new home sales data from the US, later during NA trading session.

Technical levels to watch

On the immediate downside, 0.9820 seems to act as immediate support, which is followed by 50-day SMA support near 0.9780 and 100-day SMA support around 0.9740 region. 

Meanwhile on the upside, recovery back above 0.9850 (200-day SMA resistance) might continue to confront strong resistance around 0.9900 handle, above which the pair seems all set to extend its near-term bullish traction and head towards testing May highs resistance near 0.9950 region.