USD/CHF: Bulls gather pace, eyes 0.9775 – key resistance

The US dollar extended its recovery from poor US retail sales-led slump against its Swiss counterpart in the Asian session, and now consolidates the upside near 0.9760 region in early Europe.  

USD/CHF takes-out 5-DMA at 0.9751

Currently, the USD/CHF pair trades +0.13% higher at 0.9755, testing session highs printed at 0.9759 earlier on the day. The major held the 0.97 handle, despite a sharp sell-off witnessed following the release of worse-than expected US retail sales data, which quickly weighed on the Fed rate hike bets for this year.

The major now takes a breather and gathers pace for further upside amid a better risk tone persisting in the markets, as the Asian equities traded higher alongside oil prices. Markets now look forward to a fresh batch of US economic releases due on the cards this week for fresh direction on the major.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9775/77 (10 & 20-DMA) and above which it could extend gains to 0.9800 (round number). To the downside, immediate support might be located at 0.9734 (daily low) and below that 0.9710 (post-US retail sales low).