USD/CHF flirting with highs near 0.9730, PMIs eyed

The US dollar is fighting hard to extend the recovery against its Swiss counterpart in early Europe, as risk-on moods cool-off a bit amid stalled recovery in the Asian equities and weaker oil prices.

USD/CHF supported above 5-DMA at 0.9706

Currently, the USD/CHF pair trades +0.09% higher at 0.9724, hovering near session highs of 0.9728.  USD/CHF stalls the upside as we step into the early European trading, with the CHF bulls finding support deteriorating risk sentiment as Brexit fears resurfaced and boosted the demand for safe-havens such as gold, CHF etc.

However, the major manages to keep the bid tone, largely on the back of a broadly higher greenback, as markets take profits off the table ahead of the Swiss and US manufacturing sector reports due later today.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9741/43 (100-DMA & daily R2) and above which it could extend gains to 0.9764 (200-DMA) and 0.9792 (Sept 14 high) next. To the downside, immediate support might be located at 0.9706 (5-DMA) and below that 0.9650 (psychological levels) and from there to 0.9628 (Aug 26 low).