USD/CHF well bit at 0.9830, eyeing US housing data for fresh impetus

The USD/CHF pair remained confined within a narrow trading band but trade with some positive bias just below the very important 200-day SMA resistance. 

The pair struggled for near-term direction in absence of any major market moving releases on Monday. Similar had been the case during early Asian trading hours on Tuesday. The pair, however, gained upside momentum during early European trading session as the greenback maintained its bid tone against most major currencies.

Investors now turn their focus to building permits and housing starts data from the US that would assist investors to gauge the health of US housing sector. A stronger-than-expected number would add to Friday's upbeat release of retail sales and industrial production data and could provide further traction to the ongoing bullish sentiment surrounding the greenback.

Technical levels to watch

From current levels, 200-day SMA near 0.9850 region remains immediate strong resistance, above which the pair seems to immediately aim towards 0.9895 (July 12-13 highs) before heading further towards 0.9950 (May highs resistance). On the flip side, weakness below 0.9800 round figure mark now seems to force the pair to break below 50-day SMA support near 0.9770-65 region and head towards testing 100-day SMA support near 0.9740 level.