USD/CHF capped below 0.9800 amid subdued USD

The USD/CHF pair extends its retreat from five-week highs in early Europe, in wake of fresh selling in the US dollar on profit-taking ahead of the US jobs data due later today.

USD/CHF tracks USD index lower

Currently, the USD/CHF pair trades -0.13% lower at 0.9778, reverting towards daily lows struck at 0.9772 in early Asia. Having failed to resist above 0.98 handle once again, the major slips back into the red zone, with markets largely tracking broad US dollar correction after the recent strength.

While the safe-haven Swiss franc gains as risk conditions appear to have soured, with the Euro Stoxx futures down -0.60% in early trading, which point to a negative open to the European markets.

Nothing of note for the major in the European session, and hence, the spot will remain at the mercy of the USD dynamics ahead of the ADP jobs report due later in the NA session.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9820/29 (Aug 20 high/ 5-week high)  and above which it could extend gains to 0.9850 (psychological levels) and 0.9889 (Sept 1 high) next. To the downside, immediate support might be located at 0.9760 (200-DMA) and below that 0.9738 (20-DMA) and from there to 0.9700 (round figure).