USD/CHF eyeing to move back above 0.9700 handle

After an initial dip to the 0.9660 region, the USD/CHF pair regained traction and is now trading with minor gains for the third consecutive session, now looking to move back above the 0.9700 handle.  

With investors looking past Friday's mixed US GDP report, showing annualized growth of 2.6% in the three months to June and weaker employment cost index/core PCE numbers, a modest US Dollar recovery helped the pair to recover early losses. 

Earlier during the Asian session, the pair extended Friday's retracement from one-month highs and was being weighed down by escalating geopolitical tensions after conducted another intercontinental ballistic missile test, which was seen benefitting the Swiss Franc's safe-haven appeal.

In absence of any fresh economic development, the greenback price dynamics is turning out to be an exclusive driver of the pair's up-move during early European trading session.

Later during the day, the US economic data - Chicago PMI and existing home sales data would now be looked upon for some trading impetus. However, investors are likely to wait for the keenly watched NFP release, due on Friday, before positioning for the next leg of directional move. 

Technical levels to watch

Immediate hurdle remains near the 0.9730 region (Friday's high), above which the pair is likely to aim towards testing June monthly highs resistance near 0.9765-70 region before darting towards the 0.9800 handle. 

On the flip side, any pull-back might continue to find some fresh buying interest near the 0.9660 region, which if broken would turn the pair vulnerable to head back towards the 0.9600 handle.