USD/CHF sustaining weakness below 0.9800 handle

The USD/CHF pair is extending its reversal from Tuesday's 8-day high level and dropped below 0.9800 handle to currently trade near session low level.

A broad based selling pressure surrounding the US Dollar has been the key factor contributing to the pair's downslide for second straight day after Tuesday's disappointing US productivity data seems to have negated the positive sentiment led by last week's impressive employment details from the US. 

The pair is retracing from 0.9850 region, nearing the very important 200-day SMA region and hence, a follow through selling pressure below 0.9785, weekly low touched on Monday, would confirm the reversal and increase the pair's vulnerability to continue drifting lower. 

Technical levels to watch

Weakness below 0.9785 (weekly low) should drag the pair immediately towards 50-day SMA near 0.9750 ahead of 100-day SMA important support near 0.9735 region.

On the flip side, 0.9815-17 (session high) now becomes immediate resistance to watch for, above which the momentum is likely to get extended towards the very important 200-day SMA resistance near 0.9855-60 region.