USD/CHF jumps to session high ahead of US CPI

The USD/CHF pair extended its bid tone and extended its recovery from Thursday sub-0.9700 handle touched in the aftermath of disappointing US monthly retail sales data on Thursday.

Currently hovering around 0.9750-60 confluence area, comprising of 100-day and 50-day SMAs, the greenback gained traction despite of fading hope of an eventual Fed rate-hike action next week. 

The current level of up-move could be attributed to short-covering in absence of any firm direction ahead of US CPI print, later during NA trading session. US economic docket also features the release of preliminary UoM Consumer Sentiment index for September, which is expected to provide some incentive for short-term traders.

Technical levels to watch

A follow through buying interest above 0.9760 level, leading to a bullish momentum above 0.9785, has the potential to lift the pair immediately towards the very important 0.9800 handle above which the upward trajectory could get extended towards 0.9835 horizontal resistance.

On the flip side, renewed weakness back below 0.9730 support now seems to find support near 0.9715, which if broken is likely to drag the pair back towards testing sub-0.9700 support near 0.9690 level.