USD/CHF clings to gains near session tops, around 0.9180-85 region

• USD/CHF attracted some dip-buying near the 0.9155 region and turned positive for the day.
• The prevalent risk-on environment undermined the safe-haven CHF and remained supportive.
• A subdued USD demand held bulls from placing fresh bets and kept a lid on additional gains.

The USD/CHF pair held on to its modest gains through the early North American session and was last seen trading near daily tops, around the 0.9180-85 region.

Following an early dip to the 0.9155 region, the pair managed to regain some positive traction and built on this week's rebound from the 50-day SMA support. The prevalent risk-on mood – as depicted by 
a strong rally in the equity markets – undermined the safe-haven Swiss franc (CHF) and extended some support to the USD/CHF pair.

The CHF lost some additional ground after the SNB Chairman, Thomas Jordan said that the ultra-loose monetary policy poses little risk to the stability of the domestic currency. Jordan added that the SNB is ready to buy more foreign currency to ease appreciation pressure on the CHF, which could stall Switzerland’s post-coronavirus economic recovery.

The UDS/CHF pair recovered around 30 pips from daily swing lows, albeit a subdued US dollar price action held bulls from placing any aggressive bets and kept a lid on any further gains. The USD remained depressed on the back of a weaker tone surrounding the US Treasury bond yields and failed to gain any respite from weaker US macro data.

The US Labor Department reported that the number of Americans who applied for jobless benefits fell slightly in early October to a fresh pandemic low. In fact, the Initial Weekly Jobless Claims dropped to 840K from the previous week's upwardly revised reading of 849K. The print, however, was well above the 820K expected and did little to impress bulls.

Nevertheless, the USD/CHF pair, so far, has managed to preserve its gains just below the 0.9200 mark, or weekly tops set on Monday. Some follow-through buying beyond the mentioned level will be seen as a fresh trigger for bullish traders and pave the way for a further appreciating move, possibly towards the 0.9245-50 resistance zone.

Technical levels to watch