USD/CHF struggles near weekly lows, just above 0.9700 mark

• Some renewed USD weakness prompted some fresh selling around USD/CHF on Wednesday.
• The formation of an indecisive Doji candlestick suggests that the pair might have topped out.
• Bears might wait for a break below 100-DMA as the focus shifts to US GDP and FOMC decision.

The USD/CHF pair edged lower through the early European session and is currently placed near the lower end of its weekly trading range, around the 0.9715 region.

The pair met with some fresh supply on Wednesday and extended the previous day's rejection slide from the 0.9800 mark, or the very important 200-day SMA amid some renewed selling around the US dollar.

The latest optimism over the slowing spread of the coronavirus and a move to re-open economies in some parts of the world continued denting the greenback's status as the global reserve currency.

This comes after the formation of an indecisive Doji candlestick on Tuesday and now seems to suggest that the recent strong positive move from sub-0.9600 levels might have already run out of the steam.

However, the prevailing risk-on mood, as depicted by a bullish trading sentiment around the equity markets and which tends to undermine the Swiss franc's safe-haven demand might help limit the slide.

Moreover, investors might refrain from placing any aggressive bets, rather prefer to wait on the sidelines ahead of Wednesday's important release of the Q1 GDP and the latest FOMC policy decision.

Hence, it will be prudent to wait for some follow-through selling below the 100-day SMA support, around the 0.9700 round-figure mark before positioning for any further near-term depreciating move.

The advance US GDP report is expected to show that the economic activity contracted by 4.0% annualized pace during the first three months of 2020 on the back of the coronavirus-induced lockdowns.

Meanwhile, the FOMC policy update and the subsequent press conference will be looked upon for clues about the central bank's future policy path, which might further provide some meaningful impetus.

Technical levels to watch