USD/CHF attempts a tepid recovery to 0.9800 handle

Following Thursday's sharp reversal, the USD/CHF pair attempted a tepid recovery and is currently trading around 0.9800 handle as traders brace for the upcoming volatility led by US monthly employment details. 

Today's release of NFP release would be looked upon for clarity over the Federal Reserve's near-term monetary policy stance, which would eventually help investors to determine the greenback's near-term trajectory. 

On Thursday, the major turned sharply lower and dropped over 100-pips from a multi-week high level of 0.9885, snapping its 9-days of winning streak on disappointing release of US ISM manufacturing PMI, which fell into contraction territory in August.  

The pair once again failed to sustain its move above 200-day SMA and hence, a follow through selling pressure below 50-day/100-day SMAs immediate supports would turn the pair vulnerable to extend its slide in the near-term.

Technical levels to watch

On the upside, 0.9825 (200-day SMA) seems to act as immediate resistance above which the pair is likely to make a fresh attempt to reclaim 0.9900 handle with 0.9875-80 (multi-week highs) acting as intermediate resistance.

Meanwhile on the downside, weakness below 0.9780 seems to find support near 0.9765 (50-day SMA), which is closely followed by 100-day SMA support near 0.9745 region. A convincing break below 100-day SMA support now seems to turn the pair vulnerable to extend its downslide in the near-term.