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USD/CHF turns negative, dips to 0.9700 neighborhood

The USD/CHF pair erased all of its early gains to 100-day SMA resistance near 0.9760 region and has now dipped into negative territory to currently trade at session low level around 0.9715-20 band.A fresh bout of US Dollar selling pressure seems to have emerged, taking the pair to a near five-day low level and within striking distance of breaking below 0.9700 handle. The pair is extending its reversal from a 4-week high level of 0.9837 touched in the previous week and is now trading lower for fourth consecutive day, losing over 120-pips from the vicinity of 200-day SMA region. Inability to conquer 200-day SMA, and a subsequent reversal, forced the pair to drop back below 100-day and 50-day SMA strong support levels, possibly suggesting further downside in the near-term. However, in absence of institutional activity on the back of Independence Day holiday in the US the pair is unlikely to witness a sharp slide ahead of the major fundamental triggers later during the course of the week.Key market moving events / releases scheduled during the upcoming trading sessions includes - FOMC meeting minutes on Wednesday and the most keenly watch NFP report for June on Friday. This week's key releases might extend some support for the broad based selling pressure surrounding the US Dollar in the post-Brexit risk-on rally across global financial markets. Technical levels to watchFrom current levels, 0.9700 round figure mark is likely to extend some immediate support, below which the pair is likely to drop back towards 0.9650 level. A follow through selling pressure seems to drag the pair further towards its next major support around 0.9600 round figure mark. On the flip side, 50-day SMA near 0.9735, closely followed by 100-day SMA near 0.9755-60 region, remains immediate resistance levels to conquer. Only a decisive strength back 100-day SMA strong resistance might negate any further near-term bearish bias for the pair and open room for further near-term appreciating move for the pair.



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