USD/CHF bounces off 0.9760 confluence support

A broad based greenback recovery helped the USD/CHF pair to recover around 30-pips from session low and is now inching back towards reclaiming 0.9800 handle. 

Currently trading around 0.9785-90 band, the pair once again struggled to build on to Friday's strong gains and faced rejection near the very important 200-day SMA. The pair, however, has managed to hold and rebound from 0.9760-55 confluence region comprising of 50-day and 100-day SMAs, suggesting traders reluctance to carry their positions heading into the much talked about key event risks, BOJ and FOMC monetary policy decisions, scheduled to be announced on Wednesday.

Up next would be US housing market data - housing starts and building permits, which would be looked upon for immediate impetus.

Technical levels to watch

A strong follow through buying interest above 0.9800 handle, leading to a move above 200-day SMA near 0.9805-07 region, the pair seems all set to surpass 0.9835 intermediate resistance and head towards retesting early September swing high resistance near 0.9885 level. 

On the flip side, 0.9760-55 region remains immediate strong support to defend, which if broken could accelerate the slide immediately towards 0.9720 horizontal support before the pair eventually drops below 0.9700 handle to test 0.9690-85 support.