USD/CHF turns higher, eyeing 0.9800 handle for further momentum

After bottoming out at 0.9770, the USD/CHF pair has managed to recover its lost ground to move back into positive territory and is currently trading with minor gain around 0.9785-90 band.

Earlier on Friday, the pair dropped to session lows after the release of strong employment report from Switzerland. According to the data, Switzerland’s unemployment rate dropped to 3.3%, as against market’s expectations of 3.5%. 

After the initial downward reaction, the pair has managed to recover, keeping Thursday's gains intact as traders now look forward to the release of US monthly jobs report, later during NA trading session, for fresh impetus for the pair's near-term trajectory.

Technical levels to watch

Strong bullish momentum above 0.9800 handle should immediately boost the pair towards the very important 200-day SMA resistance near 0.9845-50 region, which if conquered opens room for further near-term appreciating move for the pair. On the flip side, weakness below session lows support around 0.9770-65 region, and a subsequent break below 100-day and 50-day SMA important confluence support near 0.9745-40 region, would negate any further bullish bias and drag the pair even below 0.9700 handle, towards testing its next major support near 0.9650 area.