USD/CHF remains capped below 20-DMA on Swiss jobs

The US dollar appears to have stalled its downslide versus the Swiss franc in the European morning, keeping the USD/CHF flat-lined below 20-DMA located at 0.9723.

USD/CHF holds above 0.9700

Currently, the USD/CHF pair trades -0.10% lower at 0.9717, recovering from session lows struck at 0.9710.  USD/CHF moved lower in tandem with the US dollar index, which gauges the greenback’s relative strength, and now corrects lower from ECB-disappointment-led extensive rally.

While the major paid little heed to worse-than expected Swiss employment data, which showed that the jobless rate ticked higher to 3.4% in the reported month, as against 3.3% expected and previous.

Looking ahead, the US dollar price-action will mainly drive moves in the USD/CHF pair apart from the persisting risk trends. While the US calendar remains fairly light, with Fed Rosengren’s speech and US wholesale inventories on the cards.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9759/64 (50 & 100-DMA) and above which it could extend gains to 0.9799/0.9800 (daily R2/ round figure). To the downside, immediate support might be located at 0.9650 (psychological levels) and below that 0.9610 (daily S3).