USD/CHF drops to fresh low after ISM data added to NFP disappointment

It is turning out to be a one of the worst trading sessions for the US Dollar, with the USD/CHF pair extending its sharp slide further below 0.9800 handle as ISM non-manufacturing PMI adds to the NFP disappointment.

The pair is currently trading just above the mid-point of 0.9700-0.9800 handle, touched earlier during the NA opening session.

Adding to the disappointment from weak headline NFP number, the US ISM Non-Manufacturing PMI for May fell to print the weakest reading since Feb. 2014. The headline PMI number came-in at 52.9 as compared to April's 55.7 and was well short of 55.3 estimate and April's 55.7. 

Earlier the US Labor Department's monthly jobs report showed economy added only 38,000 new jobs in May, marking its weakest reading since September 2010 and was well below expectations of 160,000.

After rising to a multi-week high level of 0.9956 and prior to today's sharp fall, the USD/CHF pair was seen consolidating within a narrow trading range. However, after today's fall, the pair has virtually erased all of its gains registered in the previous two weeks.

Technical levels to watch

From current levels, the pair seems unlikely to find any support ahead of 50-day SMA near 0.9725, which if broken decisively should open room for further near-term depreciating move for the pair. Meanwhile on the upside, any attempts of recovery might now face immediate resistance near 0.9800 round figure mark. Even if the pair manages to clear this immediate resistance, any further up-move might now be capped at 0.9825-40, medium term moving averages confluence region (100 & 200-day SMAs).