The selling pressure around the USD/CHF pair has intensified in the last few hours, with spot prices hitting a three-week low level to test 100-day SMA key support near 0.9740 region before retracing few pips to currently trade around mid-0.9700s.
After three-days of sharp slide the pair has now erased all of its month-to-date gains and might now be headed for second straight monthly declines.
The pair seems to be repeating a price-action seen during the month of May where-in the pair failed to sustain its move beyond 200-day SMA and plunged in subsequent weeks. However, this time the scenario seems to be a bit different as 50-day SMA (at 0.9775 level) is above 100-day SMA (0.9740-35 region), indicating higher possibilities of a rebound from 100-day SMA support.
Today's US GDP release, later during the day, would now be the next big trigger that would either trigger a break-down or provide a much needed respite for the US Dollar bulls.
Trade the US Gross Domestic Product - July 29 GDP Live Coverage
Technical levels to watch
On a sustained break below 100-day SMA support near 0.9740-35 region, bears would be targeting for monthly lows support near 0.9685, which if broken would negate possibilities of a bounce back and continue dragging the pair in the near-term.
Meanwhile on the upside, 50-day SMA support break-point near 0.9775 level now seems to act as immediate resistance, above which a fresh bout of short-covering rally could boost the pair initially towards 0.9820 and eventually back towards 200-day SMA strong resistance near 0.9855-60 region.
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