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USD/CHF drops below 0.9750, eyeing 50-DMA to extend support

The USD/CHF pair's corrective slide gained momentum during early US trading session and the pair has now dropped below 100-day SMA to currently trade below 0.9750, inching closer to 50-day SMA support. After failing to extend its upward trajectory beyond 200-day SMA and a subsequent consolidative move on Wednesday, the pair finally broke on the downside as the US Dollar failed to gain traction despite of stronger-than-expected Chicago PMI data from the US. However, given SNB's warning of a possible intervention in case of sharp appreciation of the Swiss Franc, the pair seems unlikely to extend the ongoing corrective move and seems to find immediate support around 50-day SMA near 0.9735-30 region.Technical levels to watchA decisive break below 50-day SMA is likely to extend the corrective move towards a previous trading range break-point, now turned support around 0.9680 level. On the flip side rebound from current support levels now seems to confront immediate resistance around 100-day SMA near 0.9755-60 region, above which the pair seems all set to resume its up-ward trajectory and make a fresh attempt extend its up-move towards testing 200-day SMA resistance around 0.9845-50 region.



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