USD/CHF turns negative at 0.9760, awaits US PMI and FOMC minutes

The USD/CHF pair erased all of its early gains to 0.9800 level and turned negative to currently trade around 0.9760 region after the release of US trade balance data.

According to the data released by the US Census Bureau, US trade deficit for the month of May rose to $41.1 billion vs $40 billion expected and was much higher than $37.4 billion recorded in April. 

Earlier during the day, the pair was seen building on to its Tuesday's sharp up-move beyond 50-day & 100-day SMAs, shrugging-off Brexit-led global risk-off sentiment. The pair rose to 0.9800 handle before confronting some fresh selling pressure that dragged the pair into negative territory. 

Markets now look forward to other economic releases from the US economic calendar, which includes - ISM services PMI and FOMC meeting minutes. However, main focus would be on Friday's key monthly jobs data, popularly known as NFP, which has the potential to move the US Dollar significantly in either direction.

Technical levels to watch

On the immediate downside, 100-day SMA near 0.9750 region, closely followed by 50-day SMA near 0.9735 area, seems to protect immediate downside. A convincing break below these immediate support levels might negate Tuesday's up-move and immediately drag the pair back towards 0.9700 round figure mark. On the upside, sustained momentum above 0.9800 handle seems to boost the pair back towards 200-day SMA resistance near 0.9845-50 region, which if conquered decisively would pave way for further near-term appreciating move for the pair.