USD/CHF erases Friday's disappointing NFP-led losses

The USD/CHF pair extended the recovery momentum and has now erased all of its disappointing NFP print led declines on Friday, moving back above 0.9800 handle. 

Currently trading at fresh session high level of 0.9815, the pair has now moved back above the very important 200-day SMA and erased all of its Friday's disappointing headline NFP-led losses from multi-week hgihs.

Monday's up-move has been primarily led by bullish sentiment surrounding the greenback, which continues to be underpinned by Friday's comments from Cleveland Fed President Loretta Mester, which reaffirmed market expectations of an eventual Fed rate-hike action by the end of this year. 

Meanwhile, the pair shrugged off Monday's release of unemployment rate from Switzerland, which unexpectedly ticked lower to 3.3% during September from 3.4% recorded in the previous month.

With US markets closed in observance of Columbus Day, the pair on Monday would derive its move from the overall sentiment surrounding the greenback and might continue scaling higher ahead of this week's key US releases that include - FOMC meeting minutes and monthly retail sales data.

Technical levels to watch

Immediate upside resistance is pegged at 0.9820 above which the pair is likely to dart back towards Friday's swing high resistance near 0.9840 level ahead of September monthly high resistance near 0.9885 level.

On the flip side, renewed weakness back below 200-day SMA support near 0.9795 region might turn the pair vulnerable to head back towards session low support near 0.9770 level, which if broken is likely to drag the pair towards 100-day SMA support near 0.9750 region.