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USD/CHF stages a tepid bounce off 0.9700 handle

After posting fourth consecutive day of decline on Monday, the USD/CHF pair is witnessing a minor rebound from 0.9700 handle to currently trade near session high, around 0.9715-20 region.On Monday, a broadly weaker US Dollar forced the pair to erase all of its early gains to 100-day SMA and extend its reversal from the vicinity of 200-day SMA resistance, near 0.9840 region, reached in the previous week and dropped to a six-day low level of 0.9700. The fall, however, was tepid in absence of institutional activity on the back of Independence Day holiday in the US on Monday. Going forward, key market moving events / releases, which include - FOMC meeting minutes on Wednesday and Friday's US monthly jobs report, will provide the required fundamental triggers to determine the pair's near-term trajectory. In the meantime, the pair is likely to take cues from the broad risk sentiment surrounding the US Dollar and global equity markets.Technical levels to watchSustained weakness below 0.9700 level seems to drag the pair back towards 0.9650 horizontal support, below which the weakening trend is likely to get extended further towards 0.9600 round figure mark support. Meanwhile on the upside, 50-day SMA near 0.9735, closely followed by 100-day SMA near 0.9750 region, might continue to act as immediate resistance levels. Strong bullish momentum above these immediate resistance levels now seems to negate any further near-term bearish bias and open room for further near-term appreciating move for the pair.



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