USD/CHF turns neutral at 0.9670, could aim to retest weekly high

Having posted a session low near 0.9640 region, the USD/CHF pair has pared majority of its losses and is currently trading around 0.9665-70 band, nearly flat from yesterday's closing level. 

Disappointing Swiss industrial production data provided initial uplift for the pair's recovery from session through. Adding to this, stronger-than-expected rebound in monthly durable goods orders and an unexpected drop in weekly jobless claims data from the US helped the pair to extend its recovery momentum. 

Since then the pair has been muted as investors now await for fresh impetus from Friday's US GDP print and the Fed Chair Janet Yellen's speech at the Jackson Hole Symposium.

Technical outlook

Mohammed Isah, Technical Strategist at FXTechstrategy, notes, "With the pair recovering strongly on Wednesday and retaining that bias, further bullishness is envisaged. On the downside, support lies at the 0.9600 level. A turn below here will open the door for more weakness towards the 0.9550 level and then the 0.9500 level. Its daily RSI is bearish and pointing lower supporting this view. On the upside, resistance resides at the 0.9700 level where a break will clear the way for more strength to occur towards the 0.9750 level. Further out, resistance comes in at the 0.9800 level. All in all, USDCHF remains biased to the upside on further correction."