USD/CHF off session low, but remains below 0.9900 handle

The USD/CHF pair witnessed a sharp corrective move on Thursday and extended its slide further below 0.9900 handle, erasing all of its gains recorded in the previous session.

Currently trading off session low, around 0.9880-85 region, weaker investor sentiment around European equities is driving safe-haven flows towards the Swiss Franc. Moreover, possibilities of traders taking some profits off the table, following the pair's sharp up-move in the past three trading sessions, could be another reason for the pair's corrective move on Thursday. 

With the minutes from FOMC's latest meeting reaffirming market expectations of an eventual Fed rate-hike action by the end of this year, traders on Thursday will look forward to the release of US weekly jobless claims data in order to grab some short-term trading opportunities, later during NA trading session, while next key US macro release would be Friday's monthly retail sales data. 

Technical levels to watch

A follow through weakness below session low support near 0.9870-65 region is likely to get extended towards 0.9835 support below which the pair could head back towards 0.9800 handle support, nearing the very important 200-day SMA.

On the flip side, renewed bullish momentum above 0.9900 handle seems to lift the pair immediately towards 0.9925 before the pair extends its upward trajectory towards July monthly high resistance near 0.9950 region.