USD/CHF stuck in a narrow range with mild bullish bias

The USD/CHF pair maintained its mild bullish bias just above the very important 200-day SMA region but now seems to have stuck in a narrow band around 0.9850-60 band.

Following Thursday's reversal from multi-week highs, the pair initially dipped below 0.9850 but managed to recover the lost ground. The pair, however, is finding difficulty in building on to its recovery gains and extend the momentum further beyond 200-day SMA region. 

Meanwhile, an empty US economic docket seems unlikely to provide any fresh trigger for the pair's movement on Friday but the broader sentiment surrounding the greenback could assist traders to grab some short-term trading opportunities. Moreover, rising prospects of Fed rate-hike later during this year seems to limit any immediate sharp downslide. 

Technical levels to watch

On the immediate upside, momentum above session high near 0.9870 seems to lift the pair back towards 0.9900 handle, which if conquered sets the stage for continuation of the near-term upward trajectory towards May monthly highs resistance near 0.9945-50 region.

On the flip side, sustained weakness below 0.9840 immediate support, and a subsequent break below 0.9820 horizontal support, is likely to drag the pair back towards retesting 50-day SMA support near 0.9780-75 region.