USD/CHF making a fresh attempt to reclaim 0.9800 handle

The USD/CHF pair managed to hold yesterday's low and rebounded back above 100-day SMA and is now heading back towards the very important 200-day SMA.

Currently trading close to session peak level, around 0.9780 region, the pair is benefitting from disappointing Swiss CPI print for the month of September. Swiss CPI unexpectedly dropped to -0.2% y-o-y, while on monthly basis reading of +0.1 was below market expectation of +0.2%. 

Moreover, the greenback continues to reap benefit from Wednesday's a surprisingly sharp rise in the US services sector activity, which although did little to alter Fed rate-hike expectations but provided a goodish boost to the US Dollar. 

The US economic docket on Thursday features the usual weekly jobless claims data, while Friday's non-farm payrolls data for September will remain the key event of the week and would assist investors to determine the pair's near-term trajectory.

Technical levels to watch

Immediate upside resistance is pegged at 0.9795-0.9800 region (200-day SMA) above which the pair seems to immediately dart towards weekly high resistance near 0.9829 level before aiming towards September monthly high resistance near 0.9885 region.

On the downside, 0.9750 (100-day SMA) now seems to protect immediate downside, which if broken now seems to drag the pair towards 50-day SMA support near 0.9725 region.