USD/CHF surrender recovery gains ahead of Trump healthcare vote

The USD/CHF pair reversed all of its recovery gains and has now moved on the brink of breaking back below the very important 200-day SMA.

Cautious investor sentiment, ahead of the key vote on the Affordable Care Act (ACA) repeal bill in US congress, seems to be boosting demand for the Swiss Franc's safe-haven appeal. This coupled with subdued greenback action, with the key US Dollar Index failing to gain any respite, failed to assist the pair to build on early recovery gains. 

US Dollar gravitating around 99.50 ahead of House vote

Meanwhile, the release of weekly jobless claims and new home sales data from the US went unnoticed as investors keenly await for Trump's healthcare bill before committing to the pair's near-term trajectory.

Technical levels to watch

Renewed weakness back below the 200-day SMA now seems to drag the pair below 0.9880 level (yesterday's low) towards retesting yearly lows near 0.9865-60 region en-route 0.9820-15 support. 

On the upside, 0.9940 level now becomes immediate strong resistance, which if cleared decisively is likely to lift the pair back towards 0.9980-85 resistance before the pair eventually breaks through parity mark and head towards testing its next resistance near 1.0025-30 zone.