USD/CHF tumbles to 0.9800 handle after US unemployment claims

Following the release of higher-than-expected weekly jobless claims data, a fresh bout of US Dollar selling dragged the USD/CHF pair below 0.9800 handle. The pair, however, has retraced few pips and is currently trading around 0.9805-10 band.

After yesterday's sharp reversal from nearly two-month high level, the pair initially attempted to defend 200-day SMA support. However, as the day progressed bulls gave up their struggle, sending the pair spiraling lower to a fresh two week low level after US weekly jobless claims came-in at 266k, which was higher than 260k expected.

Considering today's sharp slide, for second straight day, the pair has now erased all of its gains recorded in the past two weeks and has also broken below an important support near 0.9820 level.

Focus now shifts to the very important quarterly US GDP growth figures, slated for release on Friday during NA trading session, which if fails to match consensus estimates would continue to weigh on the greenback in the near-term.

Trade the US Gross Domestic Product - July 29 GDP Live Coverage

Technical levels to watch

From current levels, 50-day SMA near 0.9775-70 region might extend immediate support, below which the pair could easily drop to test 100-day SMA support near 0.9740-35 region. On the flip side, any attempts of recovery above 0.9820 support break-point, turned resistance, might now confront a strong resistance at 200-day SMA near 0.9850-55 region. Only a decisive strength back above 200-day SMA resistance might negate any near-term bearish bias and pave way for further appreciating move in the near-term.