USD/CHF recovers to trade flat at 0.9870 ahead of ECB

After bottoming out around 0.9850 region, the USD/CHF pair resumed with its near-term bullish traction and has now erased all of its early losses to currently trade absolutely flat around 0.9865-70 region.

The bulls seem to take a breather following four consecutive days of gains. The Swiss Franc also benefitted from better-than-expected trade balance data out from Switzerland. 

The dip, however, was short-lived and was bought into as the greenback continues to gain traction after recent upbeat economic releases have revived hopes of an imminent Fed rate-hike later during this year. 

Markets now await for the ECB monetary policy decision and subsequent press conference, which has the potential to drive the US Dollar and eventually provide collateral momentum play for the USD/CHF major. Later during NA session, US economic releases will also be in focus. 

From technical perspective, the pair is now holding its strength above 200-day SMA and hence, a follow through buying interest would open room for continuation of the pair's near-term upward trajectory.

Technical levels to watch

On the immediate upside, momentum above 0.9900 handle now seems to catch fresh bids that could lift the pair towards May highs resistance near 0.9950 region, above which the pair seems all set to extend its bullish momentum in the near-term.

Meanwhile on the downside, 0.9825-20 horizontal zone now seems to act as immediate support, below which the pair is likely to 50-day SMA strong support near 0.9775 region.