USD/CHF climbs further to test 0.9650 resistance

Continuing with its upward trajectory, the USD/CHF pair has now moved back above 0.9600 level and is currently trading just a tad below 0.9650 level, virtually at the high point of the day.

The pair has witnessed a sharp recovery of over 200-pips from 0.9444, its lowest level since August 2015 touched on Tuesday. Broad based US Dollar recovery, after being butchered in the previous week on the back of BoJ disappointment, assisted the pair to extend its bounce-back for third consecutive day as traders now seem to lighten their USD bearish positions ahead of the closely watched US monthly employment data.

The pair is currently trading close to an important resistance confluence near 0.9640-50 area, comprising of 20-day SMA and 23.6% Fibonacci retracement level of pair's fall from 2016 highs to recent lows. Hence, a follow through buying interest now seems to open room for further recovery in the near-term.

Technical levels to watch

Momentum above 0.9650 strong resistance should assist the pair to extend its recovery immediately towards another confluence resistance near 0.9740-50 area, comprising of 50-day SMA and 38.2% Fibonacci retracement level. April high levels near 0.9680-85 might provide some intermediate minor resistance.

On the flip side, reversal from current resistance level might now take immediate support at 0.9600 round figure mark. A convincing weakness below 0.9600 handle might negate prospects of any further recovery and could possibly drag the pair back towards its recent daily closing lows support near 0.9550-45 area.