USD/CHF fades US GDP-led bullish spike, cautious ahead of Yellen speech

Having posted a session low around 0.9650, the USD/CHF pair regained its lost ground and jumped to a fresh weekly high following the release of US economic data. The pair, however, quickly erased all of its tepid gains and retraced back to currently trade with marginal losses, around 0.9670 region. 

The US GDP growth for the second quarter of 2016 was revised lower to 1.1% as compared to the original growth estimate of 1.2%. Meanwhile, goods trade balance data for July came-in to show a deficit of 59.0 billion versus 62.3 billion expected and 63.3 billion recorded in June. The readings were mostly in-line with estimates but failed to assist the pair to build on to its recent recovery gains. 

Market participants remained cautious ahead of the big event risk, Fed Chair Janet Yellen's speech at Jackson Hole symposium, which would be looked upon for clues over the demining of next Fed rate-hike action and hence, becomes a key determinant for the pair's near-term direction.

Technical levels to watch

From current levels, 0.9700 round figure mark now becomes immediate resistance, which if cleared seems to assist the pair to head towards testing an important confluence resistance near 0.9735-45 region (100-day and 50-day SMAs). Meanwhile on the downside, bulls would make an attempt to defend session low support near 0.9650 level, below which the pair is likely to drift towards retesting 0.9600 handle before enveutally dropping to its next major support near 0.9550-45 zone.