USD/CHF bounces-off 100-DMA, lacks momentum at 0.9750

After being slammed on Wednesday and a subsequent drop during early Asian session on Thursday, the USD/CHF pair is attempting a rebound from 100-day SMA support and is currently trading around 0.9750.

On Wednesday, prevalent weakness around the greenback dragged the pair sharply lower to extend its reversal from the 0.9840 weekly high level, touched on Tuesday. The pair subsequently dropped to weekly lows and tested the very important 100-day SMA support near 0.9735 on Thursday.

Although, the pair has managed to bounce-off session lows but the recovery seems to be lacking momentum and the pair remained stuck around 50-day SMA region.

Next in focus would be the release of weekly jobless claims and import price index, later during NA session, which could provide some fresh impetus and immediate momentum play for short-term traders. 

Technical levels to watch

Sustained recovery momentum above 0.9750 level seems to assist the pair towards 0.9785 resistance, above which the recovery momentum is likely to get extended towards 0.9820-25 strong resistance. On the flip side, break below 100-day SMA support near 0.9735 region is likely to trigger a fresh leg of weakness for the pair, dragging it immediately below 0.9700 handle before eventually dropping to the very important 0.9640 support area.