USD/CHF struggling to break through 100-DMA

Although the USD/CHF pair retreated to its session low at 1.0030 on discouraging US Non-farm Payrolls, it quickly changed course and rose to 1.0070, where the critical 100-DMA is located. At the moment the pair is up 0.19% at 1.0069.

The greenback gathered some bullish momentum as the underlying details of the NFP data suggested that the labor market is in good health. The US Dollar Index easily corrected the initial losses and is now up 0.20% at 100.80. However, risk-aversion continues to weigh on the pair as it increases the demand for the safe-haven JPY. The major equity indexes in the United States moved lower after a flat start to the last trading day of the week. As of writing, the S&P 500 was down 0.15% while the Dow Jones Industrial Average dropped 0.12%.

• US Dollar flirting with highs near 100.80
• Dollar resilient after weak jobs data - BBH

Furthermore, the Prime Minister of Russia, Dmitry Medvedev crossed the wires stating that the US strikes on Syria came 'within an inch' of military clashing with Russia. The developments from Syria keep the investors on their toes. Meanwhile, The Chinese President, Xi Jinping, is going to have another meeting with the US President, Donald Trump in the NA afternoon. 

Technical outlook

With a decisive break above the 100-DMA at 1.0070, the pair could aim for 1.0100 (psychological level/Fib. 50% of Jan/Feb fall) and 1.0170 (Mar. 7 high). On the downside, supports are seen at 1.0000 (psychological level), 0.9955 (200-DMA) and 0.9880 (Mar. 22 low).