USD/CHF surge past 0.9750 to a fresh session high

After an initial dip to 0.9710, the USD/CHF pair regained its lost ground and started building on to Thursday's recovery from a two-week low near 0.9650 region. 

Currently trading, at a fresh session high near 0.9770-75 band, the pair cleared its immediate hurdle at 100-day SMA and is now holding on to its move beyond 50-day SMA. A fresh bout of US Dollar buying interest emerged after FOMC member Rosengren added to the recent hawkish rhetoric from various Fed officials, including the Fed Chair Janet Yellen, and assisted the pair to recover majority of its weekly losses. 

Earlier on Friday, rise in Swiss unemployment rate triggered the initial leg of up-move. Ahead of the weekend, a possible wave of short-covering might have also contributed to boost the pair during early US trading session on Friday. Hence, a follow through buying interest above 50-day SMA should pave way for an additional leg of up-move for the pair.

Technical levels to watch

From current levels, 200-day SMA near 0.9800 handle seems to act as immediate resistance, above which the pair is likely to aim towards a multi-week high level of 0.9885 touched on September 1, with 0.9835 level acting as intermediate resistance. 

On the flip side, 100-day SMA resistance break point near 0.9750 now becomes immediate support to defend, which if broken could drag the pair back towards 0.9700 handle support.