USD/CHF drops back to 0.9700 handle, awaits fresh triggers

By FXStreet The USD/CHF pair’s intraday bias turned neutral as the pair erased a minor recovery to 0.9726 and dropped back to 0.9700 handle support.

The pair has been facing strong resistance near 0.9755-60 area, marking 38.2% Fibonacci retracement level of 1.0256-0.9444 downfall. The pull-back, however, has managed to hold 50-day SMA support near 0.9700 round figure mark.

In absence of any major market-moving releases from the US, traders will look forward to the release of US monthly retail sales data on Friday, which might now provide the required fundamental trigger to determine the near-term direction of the pair.

Technical levels to watch

Weakness below 0.9700 mark is likely to find immediate support at 20-day SMA, near 0.9680 level. A follow through weakness now seems to drag the pair back towards 23.6% Fibonacci retracement level support near 0.9615-10 zone.

On the upside, 0.9755-60 remains immediate hurdle to clear. A convincing break through this immediate strong resistance has the potential to lift the pair beyond April high resistance near 0.9800 round figure mark, towards testing its next major resistance near 0.9825-30 area.
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Source:: FX Street