USD/CHF attempting to build on to strength above 50-DMA

The USD/CHF pair continued with its struggle to build on to its move beyond 50-day SMA and has now tripped some of its early tepid gains to currently trade around 0.9770 region.

On Tuesday, the pair erased all of its losses posted during the previous trading session and did make an attempt to clear 50-day SMA strong hurdle, amid broad based greenback strength, but once again faced rejection near 0.9785 resistance area. 

With only the scheduled release of import prices data, a virtually empty US economic docket on Wednesday is likely to provide any fresh impetus for the pair and Fed rate-hike expectations would continue to remain the sole drive for the pair's near-term price action. 

Meanwhile, market expectations that the Fed would eventually raise interest rates by the end of this year might limit any sharp downslide for the pair and hence, increases the possibilities of a fresh buying interest that should assist the pair to continue scaling higher in the near-term. 

Technical levels to watch

From current levels, momentum above 0.9785 is likely to boost the pair immediately towards the very important 200-day SMA resistance near 0.9800 handle above which a fresh leg of up-move seems to assist the pair towards 0.9820 area (Sept. 2 high) ahead of 0.9835 horizontal resistance.

On the flip side, 100-day SMA near 0.9750 region is likely to protect immediate downside, which if broken seems to drag the pair towards 0.9720 intermediate support before eventually dropping back to retest 0.9700 handle.