USD/CHF breaks above 200-DMA as it advances to mid-0.97s

• US Dollar Index stays quiet above 95 in the NA session.
• The Fed will publish consumer credit report next.
• Wall Street trades mixed in choppy session.

After starting the new week a little below the 0.97 mark, the USD/CHF pair took advantage of an improved market sentiment and rose to a fresh 5-day high at 0.9753. As of writing, the pair was trading a couple of pips below that level and adding 0.6% on the day.

Amid a lack of significant macroeconomic data releases on Monday, the pair's price action seems to be impacted by the risk perception. With easing concerns over a no-deal Brexit following the EU's Barnier's remarks and reports of the U.S. and the E.U. having constructive trade talks, which could be finalized in November, the CHF failed to find demand as a safe-haven on Monday. Meanwhile, other than the health care and financials, all the major sectors in Wall Street are recording gains on the day to reflect the positive mood. 

On the other hand, although it recorded losses in the second half of the day, the US Dollar Index continues to float above the critical 95 handle, suggesting that the selling pressure that the dollar faced today is losing strength. At the moment, the index is down 0.2% on the day at 95.15. Later in the session, the Fed is going to publish its consumer credit report, which is expected to show an increase from $10.21 billion in June to $13 billion in July. 

Technical levels to consider

With a daily close above 0.9730 (200-DMA) the pair could extend its gains toward 0.9800 (psychological level), 0.9870 (50-DMA) and 0.9900 (psychological level/100-DMA). Below 0.9730 (200-DMA, supports could be seen at 0.9685 (daily low) and 0.9640 (Sep. 7 low).