USD/CHF drops to session low amid broad based USD weakness

After once again failing to build on to its strength above 50-day SMA, the USD/CHF pair turned lower and has now dropped a fresh session low.

Currently hovering below 100-day SMA support, around 0.9740 region, the release of upbeat Swiss ZEW economic expectations index triggered the initial leg of weakness for the pair. Adding to this, renewed weakness witnessed in the greenback across the board aggravated the selling pressure around the major during early US trading session.

Investors now turn their attention to the SNB Monetary Policy Assessment, which would provide inputs over the central bank's monetary outlook and also help markets to determine the outcome of future monetary meetings. Also in focus on Thursday, would be a slew of economic releases from the US, which includes retail sales data and regional manufacturing indices. 

Technical levels to watch

Immediate downside support is pegged at 0.9725, which if broken is likely to drag the pair back towards 0.9700-0.9695 strong support area. On the upside, 50-day SMA near 0.9765, followed by 0.9780, remains immediate strong resistance, which if conquered is likely to boost the pair immediately towards the very important 200-day SMA resistance near 0.9800-0.9810 region.