USD/CHF seems all set to reclaim 0.9800 level

Extending its Friday's rebound from 50-day SMA support, the USD/CHF pair has now moved close to a two-week high of 0.9770 touched on Friday.

On Friday, USD bulls got a boost from surprisingly strong monthly retail sales data. The pair, however, failed to built on to its gains above 0.9750-55 resistance marked by 38.2% Fibonacci retracement level of 1.0256-0.9444 downfall.

On Monday, bulls tightened their grip and now seem all set to assist the pair in reclaiming 0.9800 handle. Strength beyond 0.9800 handle would open room for further appreciating move for the pair in the near-term.

Technical levels to watch

On a clear break-though 0.9800 handle resistance bears might rush to cover their short positions, lifting the pair for further extend the up-move towards its next major resistance near 0.9850 level (100-day SMA region).

On the downside, 50-day SMA near 0.9695-0.9700 round figure mark now become immediate support and only a sustained weakness back below 0.9700 might negate the near-term bullish outlook and force the pair to resume its near-term downward trajectory.