USD/CHF consolidating around 200-DMA at 0.9860

Following yesterday's sharp reversal from nearly two-month high level of 0.9950, the USD/CHF pair is consolidating around the very important 200-day SMA around 0.9855-60 region. 

Extending its near-term break-out momentum, the pair on Wednesday jumped to 8-weekly high level to test a key resistance around 0.9950-55 region after FOMC announced to leave interest rates unchanged. 

In the post-FOMC move, the pair tumbled to erase most of its gains recorded on Tuesday as disappointing US durable goods orders failed to convince the market of an eventual Fed rate-hike in 2016, despite the central bank showed readiness to hike interest-rates in September. 

Traders will now look forward to the only economic release, scheduled for release on Friday from the US - weekly jobless claims data, for short-term momentum play. Meanwhile, the next big trigger for the pair would be the advanced reading of second-quarter GDP from the US, slated for release on Friday.

Trade the US Gross Domestic Product - July 29 GDP Live Coverage

Technical levels to watch

On the immediate downside Tuesday’s swing low near 0.9835 would be watched closely, below which the pair could be headed towards 0.9820 support before eventually dropping to 50-day SMA support near 0.9780.

Meanwhile on the upside, 0.9900 handle closely followed by 0.9920 level now becomes key resistance level, which if conquered should boost the pair beyond 0.9950-55 important resistance, towards reclaiming parity mark.