USD/CHF surges to hit fresh 5-week highs

After seesawing between tepid gains and minor losses on Wednesday, the USD/CHF pair resumed with its near-term bullish momentum and jumped to a fresh 5-week high level 

Currently hovering around 0.9865 region, the pair is trading higher for tenth consecutive session, its longest winning streak since Oct. 2015. Wednesday's release of slight better-than-expected ADP report helped the pair to close near monthly highs and sustain its move above the very important 200-day SMA. 

Strong ADP report has raised expectations of yet another solid headline NFP print, which if materialize would increase possibility of an eventual Fed rate-hike action in coming months. Heading into the big event risk, rising expectations of an imminent Fed rate-hike action might continue to extend support to the greenback and restrict any immediate downslide for the major. 

On Thursday, US economic docket features the release of weekly jobless claims and ISM manufacturing PMI that should provide some impetus for short-term traders.

Technical levels to watch

From current levels, 0.9875-80 area seems to act as immediate barrier, which if cleared should lift the pair beyond 0.9900 handle initially towards testing July daily closing high resistance near 0.9923 level before eventually heading towards July monthly high resistance near 0.9950 level. 

Meanwhile on the downside, 200-day SMA near 0.9830 region now becomes immediate support to defend. Weakness below this immediate support, and a subsequent drop below Wednesday's low support near 0.9818, is likely to extend the pull-back towards its next support near 0.9790 level.