USD/CHF fast approaching 200-DMA strong hurdle

A fresh bout of greenback buying interest seems to have emerged during early European session, with the USD/CHF pair building on to its breakout momentum above 100-day SMA. 

Currently trading at a 7-day high level near 0.9775-80 band, the pair has now moved within striking distance of the very important 200-day SMA. Monday's release of stronger-than-expected US ISM manufacturing PMI is seen assisting the US Dollar to extend its overnight gains and helped the pair to surpass 100-day SMA with ease.

The pair is also benefitting from the prevalent risk-on environment, which is driving flows away from the perceived safe-haven currencies, including the Swiss Franc. 

With an empty US economic docket, the pair would continue to be driven by the broader sentiment surrounding the US Dollar ahead of this week's key event risk, the US monthly jobs report on Friday, popularly known as NFP, which would be the next big trigger for the pair's next leg of directional move in the near-term. 

Technical levels to watch

Immediate upside resistance is pegged at 0.9797-0.9800 handle (200-day SMA), which is followed by resistance at 0.9819 (Sept. 19 high) ahead of resistance at 0.9885 level (Sept. monthly high).

On the downside, 0.9755 (100-day SMA) now becomes immediate support. Weakness below this immediate support might now be short-lived and is likely to be bought into near 0.9730 support (50-day SMA).