USD/CHF turns lower, slides further below 100-DMA

Having faced rejection at 50-day SMA resistance, the USD/CHF pair turned lower and is now extending its slide further below 100-day SMA to currently trade near 0.9740 region.

After Friday's failed attempt to sustain its move above 50-day SMA, the pair continued with its struggle to break through this important resistance despite of broad based greenback strength, as measured by the US Dollar Index. The Swiss Franc continues to attract safe-haven flows amid sell-off in global equities, depicting risk-off mood. 

With an empty US economic docket, Fed rate-hike talks would retain the spotlight on Monday as investors now await for a scheduled speech by FOMC member Lael Brainard. Further hawkish rhetoric would build on to market expectations of an eventual Fed rate-hike action in September and provide an additional boost to the pair. 

Technical levels to watch

From current levels 0.9725 level seems to act as immediate support below which the pair is likely to immediately head towards testing 0.9700 handle ahead of last week's low support near 0.9650 region.

On the flip side, 50-day SMA near 0.9760-65 region remains immediate resistance, which if conquered should assist the pair to reclaim 0.9800 strong resistance, also coinciding with the very important 200-day SMA.