USD/CHF firmer, 1.2800 – a whisker away

Having found some support near 0.9770 region earlier on the day, the USD/CHF pair extends its recovery mode into Europe, now making fresh headways towards 0.9800 levels.

USD/CHF tracks USD index higher

Currently, the USD/CHF pair trades 0.17% higher at fresh session highs of 0.9790, making another attempt to reclaim 0.98 handle. The demand for US dollar is seen picking-up pace as the bulls continue to cheer Friday’s Fedspeaks on the US employment report, while a better risk tone now emerging across the markets, as we head into early European trading, also underpins the sentiment around the greenback. The USD index gains +0.19% to 96.70, fresh session highs.

Moreover, the CHF remains unimpressed by the Swiss employment data, which further adds to the bullish tone seen in USD/CHF. The Swiss unemployment rate for Sept remained unchanged at 3.2% versus 3.2 expected.

Next of note for the major remains a string of Fedspeaks, FOMC meeting minutes and US retail sales data due on the cards later this week.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9850 (psychological levels) and above which it could extend gains to 0.9889 (Sept 1 high) and 0.9900 (round number) next. To the downside, immediate support might be located at 0.9757 (200-DMA) and below that 0.9731 (50-DMA) and from there to 0.9643/35 (Sept 30 & 2 low).