USD/CHF attempting a bullish break-out above 200-DMA at 0.9850

The USD/CHF pair maintained its strong bid tone and is now heading higher for third consecutive day to currently trade near the very important 200-day SMA region. 

The pair, on Friday, surged past 200-day after the release of stellar headline NFP number but failed to sustain its strength above the important moving average. Nevertheless, the pair still managed to register gains for third consecutive week. 

On Monday, the major was seen building on to its last week's strong gains as US Dollar continues to benefit from surprisingly strong employment details. 

Adding to this, investors are moving away from the perceived safety of the Swiss Franc on easing Brexit fears, which further seems to assist the pair to continue with its bullish momentum.

From technical perspective, the pair has repeatedly struggled to move above 200-day SMA resistance in the recent past and hence, a follow through buying above this important resistance now seems to pave way for continuation of the pair's near-term bullish momentum.

Technical levels to watch

Above 0.9845-50 resistance (200-day SMA), the pair seems to head towards testing 0.9920 (June 3 high) ahead of May monthly highs resistance near 0.9950-55 region. On the downside, 0.9815-0.9800 now become immediate support, below which the pair seems to drop back towards 50-day and 100-day SMAs important confluence support near 0.9750-45 region.