USD/CHF recovers a bit from 50-DMA, now at 0.9785 after US data

Following the announcement of BOE's monetary policy decision the USD/CHF pair tumbled below 0.9800 handle and dropped to session low level, around 50-day SMA support near 0.9760 region. The pair, however, has managed to recover a bit to currently trade around 0.9780-85 band after the release of better-than-expected US data.

Earlier on Thursday, the pair was trading week for second consecutive day and remained well offered below the very important 200-day SMA region. The pair's downward momentum gathered pace after the US Dollar witnessed intense selling pressure across the board after BOE decided to hold its monetary policy steady and leave benchmark interest rate unchanged at 0.5%.

The pair got a minor respite after the release of better-than-expected US weekly jobless claims and PPI data, which now seems to improve sentiment surrounding the US Dollar.

Technical levels to watch

Immediately below 50-day SMA support (0.9760), 100-day SMA near 0.9745 is likely to extend support, which if broken decisively should trigger a fresh leg of weakness for the pair.

On the flip side, bounce-off current support area might now confront immediate resistance around 0.9800 region, above which the pair seems all set to extend its recovery trend back towards the very important 200-day SMA resistance near 0.9845-50 region.