USD/CHF drops to session low, on the verge of breaking through 100-DMA

A fresh bout of US Dollar selling seems to have emerged during early US trading session, forcing the USD/CHF pair to erase all of its tepid recovery gains and drop back to the very important 100-day SMA region to currently trade around 0.9735 region. 

The pair seems to be weighed down by disappointing US Empire State Manufacturing Index for August, adding to the slew of recent disappointment from US economic data that has dimmed prospects of an eventual Fed rate-hike action in 2016 and is dragging the US Dollar lower across the board.

Hence, this week's key focus would be FOMC meeting minutes, which would provide an insight over the central bank’s outlook of the economy and eventually drive the greenback in the near-term.

On hourly chart, the 50-period SMA has broken below 200-period SMA, forming a death-cross and pointing to further downslide for the pair in the near-term. The bearish expectation would be confirmed once the pair sustains the weakness below 100-day SMA region near 0.9730-35 zone. 

Technical levels to watch

Immediate resistance is seen at 0.9745-50 region, followed by 0.9765 (Friday's high) ahead of 0.9785 (August 8 low support turned resistance). To the downside, immediate support can be found at 0.9708 (Friday's swing low), below which the pair could drop to 0.9695 (August 2 high) before heading towards 0.9640 support (August 2 daily closing low).