USD/CHF consolidating around 200-DMA, awaits fresh impetus

Despite of a broadly weaker US Dollar, the USD/CHF pair has managed to hold with only minor losses and is currently hovering near 200-day SMA around mid-0.9800s.

Although the pair has managed to hold its neck above the very important 200-day SMA, it has been confined within a narrow trading band in the past few trading sessions and is seen consolidating its recent gains. 

In absence of any economic releases, traders seem to await for fresh impetus from this week's FOMC monetary policy statement that is scheduled to be released on Wednesday. A hawkish tone would now increase the prospects of further Fed rate-hike action and is likely to trigger a fresh leg of bullish momentum for the US Dollar and would assist the USD/CHF pair to build on to its momentum. 

In the meantime, Tuesday's release of CB consumer confidence index and new home sales data is likely to assist short-term traders to grab some immediate momentum play.

Technical levels to watch

Bullish momentum above 0.9870 level seems to get extended towards the very important horizontal resistance near 0.9895-0.9900 zone. A decisive strength above 0.9900 handle would confirm a near-term break-out and lift the pair immediately towards May monthly highs resistance near 0.9950 level before heading towards reclaiming parity in the near-term.

Meanwhile on the downside, sustained weakness below 0.9820 immediate support now seems to drag the pair below 0.9800 round figure mark, towards testing 50-day SMA support near 0.9780 region. A follow through selling pressure is likely to force the pair towards testing its next major support at 100-day SMA, near 0.9735 region.