USD/CHF trims gains, retrace below 0.9800 level

The greenback bulls took a breather, with the USD/CHF pair trimming some of its gains from the highest level since August 10 and retraced back below 0.9800 handle. 

The US Dollar continues to gain traction as markets now seem convinced that the Fed would go ahead and raise interest-rates further before the end of the year. The major, however, seems to face some selling pressure around 0.9800 handle as traders look forward to today's release of consumer confidence data from the US, later during US session, for fresh impetus. 

However, Friday's release of US monthly jobs report (NFP) would drive the greenback in the near-term and help investors to determine the pair's near-term trajectory. 

Technical levels to watch

On a sustained move above 0.9800 handle, the pair seems to make a fresh attempt towards testing 200-day SMA resistance near 0.9830 level, which if cleared should assist the pair towards reclaiming 0.9900 handle with intermediate resistance near 0.9860-70 region. 

Meanwhile on the downside, 0.9775-70 area now seems to have emerged as immediate support, which if broken seems to drag the pair back towards an important confluence resistance break turned support near 0.9750-40 region. Failure to sustain strength above 0.9800 handle, and a subsequent break below 0.9750 strong support, might now turn the pair vulnerable to head back towards testing lower levels in the near-term.