USD/CHF making a fresh attempt to conquer 200-DMA

The USD/CHF pair is seen building on to its move back above 0.9800 handle and make a fresh attempt to break through the very important 200-day SMA.

Currently trading at session high around 0.9815 region, the pair is benefitting from a broad based US Dollar buying interest, primarily led by its strength against the Japanese Yen on the back of BOJ announcement. Although the Bank of Japan left its benchmark rates unchanged at -0.1%, its commitment to continue with aggressive monetary easing in order to achieve 2% inflation target in a promised two-year time frame lifted the greenback sharply higher and the spillover effect provided a boost to the USD/CHF major.

However, the pair's near-term trajectory would be determined by the Federal Reserve monetary policy decision, scheduled to be announced later during NY trading session on Wednesday. The central bank is not expected to move this time, but a hawkish commentary would leave doors open for at least one rate-hike during 2016 and might eventually continue driving the greenback higher. 

Technical levels to watch

A follow through buying interest above weekly high resistance near 0.9819 is likely to boost the pair immediately towards 0.9835 intermediate resistance before the pair eventually rises to monthly high resistance near 0.9885 level.

On the flip side, sustained weakness back below 0.9800 handle could possibly drag the pair back towards retesting 0.9760-55 confluence support, comprising of 50-day and 100-day SMAs below which the pair might turn vulnerable to correct further in the near-term.