USD/CHF surges to Friday’s NFP-led swing high at 0.9830

The USD/CHF pair maintained its strong bid tone and continued building onto its up-move beyond 0.9800 handle to currently trade near session high around 0.9830 region.

The pair witnessed a weekly gap down opening below 0.9800 handle but managed to recover quickly and continued with its upward trajectory for fourth consecutive day. The Swiss Franc came under further selling pressure after the latest release of monthly CPI print showed renewed deflationary pressure, which might now fuel possibilities of easing by SNB. 

Meanwhile, the greenback continues to gain traction on the back of Friday's blockbuster jobs report, which once again revived hope of an eventual Fed rate-hike action later during this year.

In absence of any major economic releases, the pair might continue to be driven by broader sentiment surrounding the US Dollar and prevalent risk sentiment around riskier assets.

Technical outlook

Research Team at Danske Bank A/S notes, "Settling back from the .9831 high to keep the .9835 resistance out of reach. Would need lift over this to clear the way for retest of the 200-day MA at .9860 then the .9900 level. Lower high sought to pressure the downside later with support now at .9750 then the .9700/.9675 area."