USD/CHF drops to session low at 0.9785 ahead of US ISM

Having faced rejection around 0.9800 handle, the USD/CHF pair has now dropped into negative territory and is currently trading at session low around 0.9780-85 band ahead of US ISM.

The pair's upside momentum remains capped below 200-day SMA and even the post-NFP sharp recovery failed to lift it beyond this very important moving average. The pair, however, has been finding strong buying interest around 100-day SMA, suggesting that markets seems to be awaiting for a fresh trigger to break through this trading range.

Even today's release of Swiss GDP print and CPI prints failed to provide impetus for a near-term break-out. Next on tap would be the release of US ISM non-manufacturing PMI, later during NY trading session, which might help traders to grab some short-term trading opportunity.

Technical levels to watch

Immediate downside support is pegged at 0.9765 (50-day SMA), which is closely followed by support near 0.9750 (100-day SMA). A convincing break below 100-day SMA support would open room for further depreciating move in the near-term.

On the flip side, 0.9820 (200-day SMA) remains immediate strong resistance, which if cleared should boost the pair immediately towards 0.9885 (Sept. 1 high) ahead of 0.9900 round figure mark.