USD/CHF recovers early lost ground to 6-day lows
|The USD/CHF pair stalled its recent corrective slide and has managed to reverse its early lost ground to the 0.9700 neighborhood.
Despite the ongoing slide in the US Treasury bond yields, led by yesterday's perceived dovish FOMC meeting minutes, a modest US Dollar rebound from two-week lows seems to be only factor behind the pair's recovery from 6-day lows.
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Apart from a tepid short-covering bounce, the pair's up-move lacked any fundamental trigger. Hence, it would be interesting to see if the pair is able to build on the recovery move or runs through some fresh supply amid the prevalent cautious sentiment around European equity markets, which tends to benefit the Swiss Franc's safe-haven appeal.
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Today's US economic docket features the release of weekly jobless claims and PPI figures, which along with Fedspeaks would now be looked upon for some fresh impetus.
Technical levels to watch
Immediate resistance is pegged near mid-0.9700s, above which the pair is likely to aim towards reclaiming the 0.9800 handle before heading back towards the very important 200-day SMA hurdle near the 0.9825 region.
On the flip side, 0.9710 area now seems to have emerged as immediate support, which if broken is likely to accelerate the fall and drag the pair back towards 100-day SMA support near the 0.9655 region.\
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