USD/CHF building on to Thursday’s strong gains above 0.9800 mark

After a brief pause on Wednesday the USD/CHF pair resumed with its near-term upward trajectory and is now building on to its momentum above 200-day SMA.

Currently trading comfortably above 0.9800 handle, around 0.9825 level, the pair extended Thursday's upsurge, led by disappointing release of Swiss CPI print and lower-than-expected US weekly jobless claims data, and has now moved just few pips away from a multi-week high level of 0.9829 touched on Tuesday. 

Thursday's initial jobless claims data from the US continued reflecting the underlying strength in the US labor market and hence, today's monthly jobs report would now play an important role in determining the pair's next leg of directional move.

From technical perspective, the pair is sustaining its move back above 200-day SMA and hence, a follow through buying interest should pave way for an additional near-term appreciating move for the pair. 

Technical levels to watch

Momentum above 0.9830 level is likely to boost the pair beyond 0.9850 level towards September monthly high resistance near 0.9885 above which the pair seems all set to retest July daily closing high resistance near 0.9920-25 region.

On the flip side, 200-day SMA near 0.9800-0.9795 area now become immediate support to defend, which if broken is likely to drag the pair back towards 100-day SMA support near 0.9755 region before eventually dropping to 50-day SMA support near 0.9730 area.