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    USD/CHF attempting a recovery, now at 0.9740 Haresh Menghani

    After declining for three consecutive days to Friday, the USD/CHF pair is witnessing a tepid bounce on Monday with the major hovering around 50-day SMA to currently trade near 0.9740 region. On Friday, the pair extended its reversal from 3-week high level of 0.9840, nearing 200-day SMA region, and dropped to 0.9700 handle despite of better-than-expected US ISM manufacturing PMI print, showing the fastest rate of expansion since June 2015. Strong US ISM manufacturing PMI provided a little respite to the broadly weakening greenback.The pair is likely to witness subdued trading action on Monday amid think liquidity conditions as US markets will be closed in observance of Independence Day. Going forward, the FOMC meeting minutes on Wednesday and Friday's US monthly employment data for the month of June might fuel volatility in the pair during the course of the current trading week. Technical levels to watchFrom current levels, momentum above 100-day SMA resistance near 0.9750-55 region is likely to lift the pair immediately towards 0.9780 resistance. This is closely followed by resistance near 0.9815 level, above which the pair seems all set to make a fresh attempt towards testing 200-day SMA resistance near 0.9845-50 region.On the flip side, 0.9715-10 (nearing 0.9700 mark) might continue to act as immediate support on the downside. Failure to hold this immediate support is likely to continue dragging the pair towards 0.9650 support before the pair drops further to retest 0.9600 round figure mark support.

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