USD/CHF flirting with 200-DMA important support

A fresh bout of greenback selling pressure seems to have emerged during European session, dragging the USD/CHF pair to fresh monthly lows near 0.9915-10 band.

Sentiment around the greenback remained weak as market participants seemed convinced that the Fed is unlikely to opt for faster rate-tightening cycle. In fact, the key US Dollar Index was seen hovering around multi-week lows and has been a key factor weighing on the major. 

Adding to this, an overnight sharp reversal in the US equity markets triggered a global risk-aversion trade on Wednesday. The prevalent risk-off environment further benefitted the Swiss Franc's safe-haven appeal and collaborated to the pair's bearish slide to the lowest level since Feb. 7.

With a relatively lighter US economic docket, featuring the only release of existing home sales, broader market risk-sentiment and the USD price-dynamics would continue to be key determinants of the pair's movement on Wednesday.

Technical levels to watch

On a decisive break below the 200-day SMA, the pair is likely to accelerate the slide towards yearly lows support near 0.9865-60 region before heading towards 0.9820-15 support. 

On the upside, recovery back above 0.9940 immediate resistance now seems to confront strong resistance near 0.9980-85 region, above which the pair is likely to aim towards testing its next resistance near 1.0025-30 zone ahead of 100-day SMA strong hurdle near 1.0060 region.