USD/CHF slides further below 0.9800 handle

After failing to decisively clear 200-day SMA and build on to Friday's up-surge, the USD/CHF pair turned sharply lower and is now extending its slide further below 0.9800 handle. 

Currently trading 0.9780 region, the pair has managed to recover few pips from session low of 0.9766 amid renewed selling pressure around the greenback. Diminishing hopes of an eventual rate-hike action on Wednesday has been a key factor weighing on the greenback across the board. 

Even a lower-than-expected release of Swiss trade surplus data for the month of August failed to extend any support and the pair remains within striking distance of a previous strong resistance now turned immediate strong support near 0.9755-50 confluence region, comprising of 50-day and 100-day SMAs.

Later during NA session, US housing market data that includes - housing starts and building permits might short-term trading opportunities. However, the upcoming Fed monetary policy decision remains the key fundamental trigger for the pair's next leg of direction move. Also in focus on Wednesday would be BOJ rate decision, which is expected to drive demand for the greenback and eventually provide impetus for the USD/CHF major. 

Technical levels to watch

On a sustained weakness back below 0.9755-50 confluence support, the pair is likely to immediately slide towards 0.9715 before heading towards its next support near 0.9690 level. Meanwhile on the upside, 200-day SMA near 0.9800-0.9805 remains immediate key resistance, which if conquered should trigger a sharp bullish spike towards September monthly high resistance near 0.9885 level.