USD/CHF reverses SNB-led bullish spike, back to 0.9735

The USD/CHF pair ran through fresh offers at session high near 100-day SMA and quickly erased majority of its gains led by SNB's decision to leave its monetary policy unchanged.

Currently trading around 0.9724 region, the pair failed to attract fresh buying interest despite of a downward revision to SNB's inflation projection. The pair once again failed to extend its move beyond 100-day SMA, clearly indicating a strong supply area around 0.9770-90 region. 

The pair, however, has managed to hold with marginal gains as focus now shifts to a slew of macro releases from the US, which is likely to provide guidance over the Fed's next possible policy action that might eventually help investors to determine the next leg of direction move for the pair. 

Technical levels to watch

A follow through selling pressure below 0.9725 (session low), the pair is likely to break through 0.9700 handle and head toward testing 0.9670-65 horizontal support. Meanwhile on the upside, momentum above 100-day SMA resistance near 0.9765 region might now confront resistance at the very important 200-day SMA near 0.9800-10 region above which the pair seems all set to extend its upward trajectory initially towards 0.9835 horizontal resistance and eventually towards monthly  high resistance near 0.9885 level.