USD/CHF drops in tandem with USD index, 100-DMA eyed

The USD/CHF pair stalled its upside consolidation phase in early Asia, and broke to the downside thereon, mirroring the corrective moves seen in the US dollar against its major competitors.

USD/CHF drops further below 200-DMA at 0.9803

Currently, the USD/CHF pair trades -0.19% lower at 0.9789, flirting with session lows struck at 0.9784 last minutes. USD/CHF met fresh supply near 200-DMA and now extends its corrective slide in the European morning, as the US dollar inches lower versus its six major rivals, reversing a part of post-NFP gains. The USD index now drops -0.21% to 95.67 levels.

The US dollar rallied on Friday, despite disappointing US jobs report, as hawkish comments from Fed’s Lacker outweighed poor payrolls data-backed bearish momentum.

Looking ahead, Monday holds little of relevance for the major as the US markets remain closed in observance of Labour Day. Hence, focus shifts towards Tuesday’s Swiss GDP and CPI figures, while SNB Chairman Jordan’s speech will be closely eyed.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9803 (200-DMA) and above which it could extend gains to 0.9819 (post-NFP high). To the downside, immediate support might be located at 0.9770/66 (50 & 100-DMA) and below that 0.9750 (psychological levels).