Profit-taking and position squaring ahead of Friday’s U.S. Non-Farm Payrolls Report helped form a daily closing price reversal bottom in the USD CHF on Thursday.

This could be something minor or it could be the start of an overdue correction. It all depends on how traders read Friday’s U.S. employment report.

The U.S. Dollar continued to mount its strong recovery against the major currencies on Thursday. The Dollar Index rose sharply, led primarily by a strong gain in the Dollar/Yen and reasonable advances against the commodity-linked currencies.

The U.S. Dollar see-sawed most of the day, before closing lower. The lack of economic reports caused a choppy two-sided trade. In addition, many traders stayed on the sidelines or evened up position ahead of this week’s many central bank reports. In most cases the Dollar continued its strength in a follow-through rally from Friday, but failed to hold on to its gains by the close.