USD/CHF holding stable near monthly highs, focus on ADP report

Broad based US Dollar strength has been a key theme in the FX market since Friday, with the USD/CHF pair scaling higher for ninth consecutive session to move back above 200-day SMA for the first time since late July. 

Currently trading at 0.9835 region, the pair is just few pips away from monthly high level of 0.9845 touched on Tuesday following the release of surprisingly stronger consumer confidence data from the US. 

Increasing prospects of an eventual Fed rate-hike action is the key factor supporting the ongoing bullish traction around the greenback and hence, Friday's release of NFP data becomes even more important in order to gauge possibilities of such an action in September. Ahead of the official report, today's ADP report on private sector employment would provide hints 

The closely watched US monthly employment details (NFP), due for release on Friday, now turn an important factor in determining the Federal Reserve's next monetary policy action. Today's release of ADP report on private sector employment will act as a precursor to Friday's official jobs report. Also in focus from US economic calendar on Wednesday would be the release of Chicago PMI and pending home sales data, later during NY trading session. 

Technical levels to watch

A follow through buying interest above 0.9850 immediate resistance seems to assist the pair towards 0.9875 intermediate resistance before the pair attempts towards reclaiming of 0.9900 round figure mark. On the flip side, weakness back below 200-day SMA, resistance turned support near 0.9830-25 region, is likely to get extended but seems limited by support near 0.9800 handle.