USD/CHF turns negative, back below 0.9800 level

A fresh wave of risk-on trade seems to have emerged, dragging the USD/CHF pair back below 0.9800 handle and erase all of its early gains to 0.9820 to currently trade near session low level around 0.9780-85 band.

Despite of the sudden turnaround, the pair remained within Tuesday's broad trading range for second consecutive day as a broader US Dollar weakness seems to trigger some profit-taking move in the pair. 

Given SNB's warning of a possible intervention in case of sharp appreciation of the Swiss Franc, the pair seems unlikely to witness a sharp corrective move following an up-surge of over 300-pips from pre-Brexit low level of 0.9500.

Traders now look forward to today's US economic releases that includes - weekly unemployment claims and Chicago PMI, which might provide some momentum for short-term traders. 

Technical levels to watch

Bears would be eyeing for a sustained weakness below 0.9780 that could drag the pair towards 100-day SMA support near 0.9755-50 region, below which 50-day SMA support near 0.9730 region is exposed. On the upside, the pair needs to build on to its momentum above 0.9820 in order to make an attempt towards testing 200-day SMA resistance near 0.9845-50 region. A convincing strength above 200-day SMA now paves way for additional near-term appreciating move for the pair.