USD/CHF recovers to 0.9830, upside remains capped at 200-DMA

Strong buying at lower levels helped the USD/CHF pair to recover from its European session dip below 0.9800 handle and jump back to the very important 200-day SMA strong resistance. The pair has once again retraced from 200-day SMA resistance and is currently trading around 0.9830-40 band.

Easing global risk aversion is driving investors away from the perceived safety of the Swiss Franc and continues to lift the USD/CHF pair. Adding to this, a surprisingly strong June employment data from the US is extending additional support to the greenback. 

Moreover, SNB has already warned of a possible intervention in case of sharp appreciation of the Swiss Franc, which also seems to contribute towards the pair's ongoing bullish momentum. 

Going forward the pair would continue to take cues from the upcoming US economic data, which if provide further proof of the underlying strength of the US economy might continue to boost the pair in the near-future. 

For immediate price-action, traders will turn their focus on Thursday’s BOE monetary policy decision, which might trigger some near-term volatility in the major. 

From technical perspective, the pair has repeatedly failed to conquer 200-day SMA resistance but has also found buying interest at lower levels, possibly suggesting a range-bound trade in the near-term until the pair manages to break through the key resistance.

Technical levels to watch

On a sustained move above 200-day SMA resistance near 0.9855-60 region, the pair seems to immediately dart towards May monthly highs resistance near 0.9950-55 region, with 0.9900 round figure mark acting as intermediate resistance.

On the downside, a decisive break below 0.9800 handle is likely to drag the pair immediately towards 50-day and 100-day SMAs confluence support near 0.9755-50 region, which if broken might negate any bullish bias and open room for further near-term depreciating move for the pair.