USD/CHF drops to lows at 0.9770 on upbeat Swiss jobs

The buying interest around the Swiss currency picked-up pace following the release of better than expected Switzerland’s employment data, knocking-off USD/CHF to fresh session lows below 0.98 handle.

USD/CHF faces rejection just shy of 0.9800

Currently, the USD/CHF pair trades -0.07% lower at fresh session lows of 0.9770, moving further away from 0.98 barrier. The Swiss franc remains better bid against its American counterpart in early Europe, having received fresh impetus from upbeat Swiss employment data.

Switzerland’s unemployment rate stood at 3.3% m/m, as against market’s expectations that the gauge would come in at 3.3%. It represents a decrease of 5,651 people to 139,127 in total.

Additionally, the weakness seen in the major can be also attributed to the broad based US dollar correction ahead of the US labour market report due later in the NA session. The US dollar index, which measures the relative strength of the greenback against its six major peers, now drops -0.20% to 96.14 levels. 

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9800/07 (round number/ daily R1) and above which it could extend gains to 0.9839/55 (multi-week tops/ 200-DMA). To the downside, immediate support might be located at 0.9761/58 (50 & 5-DMA) and below that 0.9708. (20-DMA).