USD/CHF recovers lost ground, reclaims 0.9800 handle

The USD/CHF pair has managed to recover all of its lost ground and is now trading flat around 0.9795-0.9800 handle, amid renewed buying interest around the greenback.

Following Friday's dismal NFP print markets remains divided over prospects of an eventual Fed rate-hike action in September and has led to range-bound directionless trading action. However, market players are convinced that the Fed might still go ahead and raise interest rates at least once by the end of this year and seems to negate Friday's mild disappointment from monthly jobs report.

In a holiday shortened trading week in the US and with a relatively lighter US economic calendar, the pair is likely to take cues from Swiss economic releases that includes - quarterly GDP print, monthly CPI figures on Tuesday and monthly unemployment rate on Friday. Investors will also scrutinize SNB Governing Board Chairman Thomas Jordan's comments on Tuesday when he speaks at the Faculty of Economics, in Lucerne. 

Technical levels to watch

From current levels, 200-day SMA near 0.9822-25 region remains immediate resistance above which the pair seems all set to make a dart towards last week's multi-week high resistance near 0.9885 before aiming towards reclaiming 0.9900 handle. On the downside, 50-day SMA near 0.9765, closely followed by 100-day SMA near 0.9750-45 region, are likely to act as immediate support levels, which if broken decisively would open room for further downslide for the pair in the near-term.