USD/CHF jumps back above 0.9800, still weak for second day running

Better-than-expected US economic data provided the much needed relief for the US Dollar bulls, with the USD/CHF pair staging a goodish recovery from 50-day SMA support to currently trade comfortably back above 0.9800 handle.

After trading below 200-day SMA for majority of the day, the pair tumbled to 0.9760 region as the greenback saw intense selling pressure after BOE decided to stand pat and hold its key interest rate unchanged at record low level of 0.5%. 

The pair, however, managed to recovery swiftly, helped by receding bearish sentiment surrounding the greenback after the release of US weekly jobless claims and PPI data. 

Investors now shift their focus on a slew of economic data from the US, which includes - CPI, monthly retail sales, manufacturing data and consumer sentiment index, slated for release on Friday.

Technical levels to watch

The rebound momentum could further gain traction if the pair manages to move back above 200-day SMA resistance near 0.9845-50 region, above which if conquered would now open room for further near-term appreciating move for the pair, initially towards 0.9900 round figure mark and eventually towards May highs resistance near 0.9945-50 region.

Meanwhile on the downside, 50-day SMA near 0.9765-60 region, which is closely followed by 100-day SMA near 0.9745-40 region, remains immediate key support levels to watch for. On a sustained weakness below this support confluence has the potential to drag the pair below 0.9700 handle towards testing its next major support near 0.9650.