200-DMA caps USD/CHF, drops to 0.9800 level

The US Dollar continues to witness selling pressure across the board, with the USD/CHF snapping three days of winning streak and dipped below 0.9800 handle before retracing few pips to currently trade around 0.9810-15 band.

Despite of Friday's impressive NFP print, the pair lost its upside momentum and once again failed to conquer its move above 200-day SMA strong resistance near 0.9855-60 region. The pair's repeated failure to sustain its strength above 200-day SMA forced short-term traders to unwind their bullish US Dollar bets after last week's up-surge of over 150-pips. 

Going forward, the pair would take cues from sentiment surrounding the greenback and any further developments / fallout from the historic Brexit referendum ahead of this week's key event risk, BOE monetary policy decision on Thursday. In the meantime, short-term traders will turn their attention to speeches from FOMC members, Tarullo and Bullard, which will be followed by the release of US JOLTS jobs opening later during NA session.

Technical levels to watch

On a sustained break below 0.9800 handle, the pair could be headed back to 0.9765 intermediate support before dropping to important moving-averages (50-day and 100-day SMAs) confluence support near 0.9750-45 region. On the flip side, momentum above 0.9830 might continue to confront strong resistance around 200-day SMA, near 0.9855-60 region, which if conquered would pave way for extension of the pair's upward trajectory in the near-term.