USD/CHF consolidating around 0.9800 level, awaits fresh impetus

The USD/CHF pair is seen extending its consolidation move for second day running and is currently trading near 0.9800 handle, around the mid-point of Tuesday's trading range. 

Following the historic referendum vote, the pair surged for three consecutive days and managed to sustain its strong gains above 100-day SMA. Despite of some improvement in global risk sentiment, leading to a broadly weak US Dollar that helped most major pair to recover some lost ground in the past couple of day, the pair was seen consolidating on possibilities of an intervention from the SNB in case of sharp appreciation of the Swiss Franc. 

During the early part of the week, the pair managed to build on to its Friday's gains and decisively conquered 100-day SMA resistance. The momentum, however, seems to have stalled ahead of the very important 200-day SMA resistance, possibly awaiting for fresh impetus for near-term direction. 

Meanwhile, traders would take cues from today's releases from the US that includes - weekly unemployment claims and Chicago PMI, in order to grab some short-term trading moves.

Technical levels to watch

On the immediate upside, momentum above 0.9820 seems to confront resistance at 200-day SMA near 0.9845 region, which if conquered decisively seems to open room for extension of the pair's near-term upward trajectory immediately towards 0.9900 handle ahead of May daily closing highs resistance near 0.9950 area.

On the downside, weakness below Wednesday's low support near 0.9780 is likely to get extended towards 100-day SMA near 0.9755 region. Dips below 100-day SMA support are likely to get bought into and hence might be limited by a 50-day SMA support around 0.9735-30 region. A decisive break below 50-day SMA support might negate bullish expectations and turn the pair vulnerable to further downside in the near-term.