USD/CHF gains further traction after US CPI print, now eyeing 200-DMA

The greenback caught fresh bids following the release of inflation figures, with the USD/CHF pair extending its upward trajectory and jumped to a fresh session high.

Currently trading near 0.9780 level, the pair got an additional boost after US CPI print ticked higher-than-expected and came-in at 1.1% y-o-y for August as against 0.8% recorded in July. Meanwhile, the core CPI also surpassed expectations and printed a reading of 2.3% y-o-y. 

Immediate after the release, the greenback surged across the board and the spot extended its recovery trend from Thursday's sub-0.9700 handle support touched in the aftermath of disappointing US monthly retail sales data.

Up next, the release of Reuters/Michigan consumer sentiment index would be looked upon for fresh impetus for the next leg of move for the major. 

Technical levels to watch

Immediate upside resistance is seen at 0.9785 level, above which a fresh bout of short-covering is likely to boost the pair immediately towards 200-day SMA resistance near 0.9800 handle.

On the downside, 50-day SMA near 0.9760, closely followed by 100-day SMA near 0.9750 region, now becomes immediate support levels to defend. Weakness back below 100-day SMA might now negate possibilities of further up-move for the pair.