USD/CHF finds support ahead of 0.99, looks to make highest weekly close since August

• US Dollar Index recovers above 95.70.
• September NFP data disappoint on Friday.
• Wall Street starts the last day of the week in red.

After advancing to its highest level since August 20 at 0.9955, the USD/CHF pair changed its direction and fell toward the 0.99 mark as the greenback struggled to preserve its bullish momentum following the NFP report. However, with the trading volume thinning out toward the end of the week, the dollar started consolidating its losses and allowed the pair to move into the positive territory. At the moment, the pair is up 0.1% on a daily basis at 0.9930.

The U.S. Burea of Labor Statistics on Friday announced that the unemployment rate fell to its lowest level since 1969 at 3.7% as the nonfarm payroll employment increased by 134,000 compared to analysts' estimate of 185,000. Underlying details of the report revealed that the annual wage growth eased to 2.8% on a yearly basis from 2.9% in August. 

Commenting on the potential impact of today's employment data on exchange rates, "The NFP report is about as clear as mud for FX markets. On the whole, we are not convinced that this is a catalyst to trigger additional USD gains. If anything, it could be quite the opposite. This is because the melt-up in long-end Treasury yields earlier this week may have raised the bar for payrolls to support an additional back-up in rates," TD Securities analysts noted.

In the meantime, Wall Street stays under pressure for the second straight day on Friday to help the CHF stay resilient against the buck. At the moment, the Dow Jones Industrial Average and the S&P 500 were losing 0.6% and 0.5%, respectively.

Technical levels to consider

The pair could encounter the first technical resistance at 0.9955 (daily high) ahead of 1.0000 (psychological level/parity) and 1.0065 (Jul. 13 high). On the downside, supports are located at 0.9900 (psychological level), 0.9855 (100-DMA) and 0.9775 (50-DMA).