USD/CHF taps 0.9800 mark, aiming for a fresh break-out above 200-DMA

Extending its bullish momentum above 100-day SMA, the USD/CHF pair jumped to the highest level since Sept. 21 and retested the very important 200-day SMA.

Currently trading around 0.9795 region, off few pips from session peak level beyond 0.9800 handle, the pair continues to benefit from a broadly stronger greenback, which was seen building on to its overnight gains led by surprisingly strong US ISM manufacturing PMI. 

Moreover, the prevalent risk-friendly environment is also supportive of the pair's strong up-move on Tuesday as the Swiss Franc seems to be losing its safe-haven appeal.

In absence of any market-moving economic releases from the US, the prevalent bullish sentiment around the US Dollar seems to assist the pair to continue scaling higher as market attention now turns to one of the major economic indicator from the US, monthly jobs report, scheduled for release on Friday.

Technical levels to watch

On a sustained move above 0.9800 handle (200-day SMA) the pair is likely to dart towards 0.9819 (Sept. 19 high) ahead of testing September monthly high resistance near 0.9885. Meanwhile on the downside, retracement back below 0.9785-80 immediate support could trigger some profit taking move back towards 100-day SMA support near 0.9755-50 region.