USD/CHF erases early gains, turns flat at 0.9730

As the US trading session got underway, the USD/CHF pair came under some selling pressure and erased all of its early gains to 0.9750 region to currently trade absolutely flat around 0.9730 region.

After stalling a five-day of losing streak, the pair on Wednesday surged to move back above 0.9700 handle and subsequently attempted to build on to its strong gains during European session on Thursday. 

The pair, however, lost upside momentum following the release of higher-than-expected US weekly jobless claims data.

Despite of the pull-back from highs, the pair is still trading around 100-day SMA pivot-point and hence, seems more likely to resume its bullish traction. The view, however, gets negated should the pair break through session lows support.

Next in focus would be the US employment details for the month of July, which would now determine the near-term trajectory for the greenback and eventually drive the USD/CHF major.

Technical levels to watch

We can see immediate resistance at 0.9750 (day's high) ahead of 0.9758 (50-day SMA) and 0.9810 (July 29 high). On the downside, immediate support is pegged at 0.9720 (session low) followed by 0.9703 (August 1 high, resistance turned support) ahead of 0.9682 (August 1 closing).