USD/CHF inching back closer to Friday’s one-month high

The USD/CHF pair continued gaining traction through the mid-European session and is now placed at session tops near the 0.9710 region.

After recovering early lost ground to 0.9663 level, the pair turned higher for the third consecutive session and is now inching back closer to one-month highs touched on Friday. A modest greenback recovery, with the key US Dollar Index bouncing off 13-month lows, has been one of the key factors driving the pair higher.

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Adding to this, a sharp recovery in European equity markets, pointing to increasing investors' appetite for riskier assets further dented the Swiss Franc's safe-haven appeal and collaborated to the pair's up-move back beyond the 0.9700 handle.

Looking at the broader picture, the recent sharp up-move since Thursday, coupled with reemergence of fresh buying interest on early dip clearly suggests that the pair's ongoing recovery move from multi-month lows might be still far from over. Hence, a follow through momentum beyond Friday's swing high now seems a distinct possibility.

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Technical levels to watch

Momentum above 0.9730 level could get extended towards 0.9760-65 resistance area before the pair aims towards testing 100-day SMA hurdle near the 0.9810 region. On the flip side, retracement back below 0.9680 level, leading to a subsequent drop below the 0.9665 region (session lows) might turn the pair vulnerable to head back towards retesting the 0.9600 handle.