USD/CHF erases Wednesday’s losses, retests 200-DMA

The greenback gained further traction during early NY session, with the USD/CHF pair erasing all of its losses recorded on Wednesday and moves a step closer to 0.9800 handle.

Currently trading at a fresh session high level of 0.9792, around 200-day SMA region, the pair caught fresh bids after the release of US weekly jobless claims reaffirmed the underlying strength of the US labor market and might have now raised investor expectations of a stronger headline number from Friday's monthly report. 

Earlier on Thursday, disappointing release of Swiss CPI for the month of September triggered the initial leg of up-move for the pair. Moreover, the greenback continued to reap benefits from Wednesday's strong US services sector reading and provided additional leg of up-move for the pair.

Looking ahead, Friday's NFP release remains key fundamental trigger, which would help investors to evaluate the possible timing for next Fed rate-hike decision and eventually would be a key determinant of the pair's near-term trajectory.

Technical levels to watch

A follow through buying interest above 200-day SMA resistance near 0.9795-0.9800 handle is likely to boost the pair immediately towards weekly high resistance near 0.9829 above which the pair seems all set to test 0.9885 resistance (September 1 high).

Conversely failure to conquer 200-day SMA resistance and a subsequent reversal below 100-day SMA support near 0.9755 region is likely to drag the pair immediately towards 50-day SMA support near 0.9725 area.