USD/CHF gets a temporary boost, jumps to session high

US economic releases provided a temporary boost to the US Dollar, with the USD/CHF pair erasing its early losses to climb back above 0.9800 handle to currently trade at session high level. 

Stronger-than-expected monthly retail sales data and mostly in-line CPI print, when accompanied with a stellar June employment details, clearly points to the underlying strength of the US economic recovery. 

The US Dollar, however, has failed to benefit from the incoming positive data as market participants remain pessimistic over the pace of Fed rate-hike. Moreover, following last month's Brexit vote, the greenback has been solely driven by global risk sentiment and hence, the prevalent risk-on sentiment continues to weigh on the US Dollar.

Meanwhile, the USD/CHF pair once again failed to sustain its strength above the very important 200-day SMA resistance but has held on to 50-day SMA immediate support, indicating the near-term range before an imminent break-out in either direction.

Technical levels to watch

Below 50-day SMA support, the pair could immediately drop to test 0.9700 handle before heading towards its next major support near 0.9650 region. On the flip side, the pair is likely to gain traction above the very important 200-day SMA resistance near 0.9845, which could lift the pair to 0.9900 handle (recent highs) ahead of 0.9945-50 resistance (May highs).