USD/CHF struggling to defend 200-DMA, healthcare vote eyed

Having posted a session high near 0.9960 region, the USD/CHF pair ran through fresh offers and has now slipped back below the very important 200-day SMA. 

The pair has now moved on the brink of breaking below the 0.9900 handle amid some renewed greenback selling pressure. In fact, the key US Dollar Index surrendered all of its early recovery gains and is now drifting back closer to multi-week lows touched on Wednesday. 

Moreover, the prevalent cautious environment, in wake of uncertainty over the US healthcare bill, is further supportive for the Swiss Franc's safe-haven appeal and collaborating to the offered tone surrounding the major.

On the economic data front, the release of durable goods orders might provide some trading impetus but is unlikely to prove as a game changer for the greenback and hence, all eyes would remain focused on today's vote on Trump's healtcare legislation.

   • All eyes on US House vote on the health care act - BBH

Technical levels to watch

On a sustained break below the 0.9900 handle, leading to a subsequent break below 7-week lows support near 0.9880 level, is likely to accelerate the slide towards yearly lows near 0.9860 level ahead of 0.9840 support.

On the flip side, momentum back above 0.9935-40 area now seems to trigger a short-covering rally towards 0.9985 area before the pair eventually breaks through parity mark and head towards testing 1.0020-25 resistance area.