USD/CHF slides further below 200-DMA, drops to weekly low

A fresh wave of US Dollar selling seems to have emerged during the last hour of trading, dragging the USD/CHF pair further below 200-day SMA break-out level to a fresh weekly low. 

Currently trading around 0.9830-35 region, at 7-day low, the pair once again seems to have failed in building on to its bullish momentum above 200-day SMA, which would be confirmed once the pair starts trading below 0.9820 strong horizontal support.

A broad based US Dollar selling remained a key theme on Thursday after yesterday's FOMC decision, which although left interest rates unchanged but showed readiness to go ahead and hike interest rates in September.

Markets, however, seemed unconvinced of an eventual rate-hike in September, with the CME groups FedWatch tool still pointing to less-than 20% probability of such an action in September/November. Diminishing prospects of Fed rate-hike in the near-future is seen weighing on the US Dollar across the board.

The next big trigger that would assist traders to gauge near-term direction of the pair would be Friday's release of advanced US GDP print for the second-quarter of 2016.

Trade the US Gross Domestic Product - July 29 GDP Live Coverage

Technical levels to watch

Weakness below 0.9820 immediate support is likely to get extended immediately towards 50-day SMA support near 0.9780, below which the pair seems to drift towards testing its next major support near 0.9735-30 region representing 100-day SMA.

On the flip side, 200-day SMA near 0.9850-55 region now turns immediate resistance to watch for. This is followed by resistance near 0.9900 handle ahead of a key resistance near 0.9950-55 zone.