USD/CHF flirts with session tops, around 0.9270 area ahead of US ISM Services PMI

The USD/CHF pair held on to its intraday gains through the mid-European session and was last seen hovering near the top end of its daily trading range, around the 0.9265-70 region.

A combination of factors assisted the USD/CHF pair to regain positive traction on Tuesday and recover a part of the previous day's losses to over one week tops. A solid rebound in the global equity markets undermined the safe-haven Swiss franc. Apart from this, a goodish pickup in the US dollar demand provided an additional boost to the major.

The USD continued drawing some support from firming expectations that the Fed would begin rolling back its massive pandemic-era stimulus as soon as November. The markets also seem to have started pricing in the prospects for an interest rate hike in 2022. This, along with an uptick in the US Treasury bond yields, acted as a tailwind for the greenback.

With Tuesday's move up, the USD/CHF pair, for now, seems to have snapped three consecutive days of the losing streak and stalled its recent pullback from near six-month tops. It, however, remains to be seen if bulls can capitalize on the move or the pair meets with fresh supply at higher levels ahead of the US monthly jobs report (NFP) on Friday.

Market participants now look forward to the release of ISM Services PMI. Apart from this, the US bond yields and a scheduled speech by Fed Governor Randal Quarles might influence the USD price dynamics. Traders will further take cues from the broader market risk sentiment to grab some short-term opportunities around the USD/CHF pair.

Technical levels to watch