USD/CHF slides further below 0.9700 handle

The USD/CHF pair remained heavily offered and extending its weakness further below 0.9700 handle has now dropped to a 2-week low. 

Currently trading around 0.9670-75 band, the pair is fast approaching monthly lows support near 0.9650 level touched on September 8. Post-FOMC US Dollar sell-off has been the key factor that is contributing to a follow through weakness after yesterday's sharp reversal from the very important 200-day SMA.

Repeated rejections from 200-day SMA and a subsequent break below an important confluence support near 0.9755-50 region seems to dashed expectations of any near-term recovery and might have forced traders to unwind their bullish bets.

Next on tap would be US economic releases that include - weekly unemployment claims, existing home sales data and CB leading indicator. 

Technical levels to watch

On a sustained weakness below 0.9670, the pair could immediately drop to 0.9650 support, which if broken would make it vulnerable to further downslide towards 0.9620-15 support area. On the upside, any recovery attempts back above 0.9700 handle seems to confront resistance at 0.9715. Even if the pair manages to clear 0.9715 hurdle, further recovery now seems to be capped at 0.9750-55 confluence support break turned resistance.