USD/CHF attempting to build on to its momentum above 0.9800 handle

Extending its bullish trajectory for eighth straight session, the USD/CHF pair is now attempting to build on to its gains above 0.9800 handle. 

The US Dollar stayed firm and is seen extending its strength led by increasing prospects of an eventual Fed rate-hike after Friday’s hawkish rhetoric from several Federal Reserve officials, including the Fed Chair Janet Yellen. Monday's release of core PCE price index helped support the view of Fed raising interest-rates, sooner rather than later, and boosted the pair to its highest level since August 10. 

Today's release of the Conference Board's US consumer confidence, later during US session would provide some near-term impetus for the pair. However, key determinant of the pair's near-term direction would be the August non-farm payrolls (NFP) data, slated for release on Friday, which has the potential to trigger strong US Dollar moves in either direction. 

Even from technical perspective, the pair is building on to its break-out momentum above an important confluence resistance near 0.9750 region and hence, seems more likely to continue with its near-term upward trajectory.

Technical levels to watch

From current levels, the pair seems to aim towards testing the very important 200-day SMA resistance near 0.9830 region, above which the momentum is likely to boost the pair beyond 0.9900 handle towards retesting July monthly high resistance near 0.9950 area. 

On the flip side, 0.9750-40 zone (confluence resistance break-point) now seems to protect immediate downside. Failure to build on to its bullish momentum, and a subsequent drop back below 0.9750 support is likely to turn the pair vulnerable to head back towards 0.9700 handle.