USD/CHF dips to 0.9770, now eyeing US GDP for further direction

After yesterday's up-surge for second consecutive day, improvement in global risk appetite seems to dent the safe-haven appeal of the greenback with the USD/CHF pair now trimming some of its Brexit led sharp gains to currently trade around 0.9770-65 band.

On Monday, the pair once again failed to sustain its strength above 0.9800 handle but still ended with sharp gains on persistent global risk-off sentiment. As news flow surrounding the historic Brexit referendum recedes on Tuesday, the pair is seen extending its pull-back from a four week high level of 0.9819 touched in the previous trading session.

Moving forward, traders shift their focus to today's macro-economic releases from the US, which includes the final GDP reading for the first quarter of 2016 and Conference Board's Consumer Confidence index for June, scheduled for release later on Tuesday during NY trading session. 

Monday's up-move assisted the pair to decisively break through 100-day SMA resistance, indicating higher possibilities of extension of the pair's near-term upward trajectory. This 100-day SMA resistance break-point now becomes immediate support, which if broken might trigger a near-term corrective move for the pair.

Technical levels to watch

Weakness back below 100-day SMA immediate support around 0.9755-50 region is likely to drag the pair immediate towards 50-day SMA support near 0.9735-30 area, below which the pair seems to extend its corrective move, even below 0.9700 handle, towards an important horizontal support near 0.9650 level.

Meanwhile on the upside, the pair has repeatedly failed to build on to its strength above 0.9800 handle and hence, a strong follow through buying interest above 0.9800 handle now seems to boost the pair immediately towards 0.9890-0.9900 resistance ahead of May daily closing highs resistance around 0.9945-50 region.