USD/CHF clings to gains above 0.9700 handle

The USD/CHF pair extended its recovery trend from 0.9660 support area and is now building on to its move back above 0.9700 handle. 

Currently trading around 0.9720 region, the pair initially jumped to 0.9736 (closer to 50-day SMA) as the US Dollar remained underpinned by Tuesday's strong consumer confidence data and hawkish comment from Federal Reserve Vice Chairman Stanley Fischer. 

In absence of any major economic releases during European session, the pair would take cues from the broader sentiment surrounding the greenback. However, later during the NA trading session US monthly durable goods order, followed by Fed Chair Janet Yellen's testimony, would provide fresh impetus.

Technical levels to watch

On the upside, 50-day SMA near 0.9740-45 region is likely to act as immediate resistance. This is closely followed by resistance at 100-day SMA near 0.9755-60 region. A decisive move above 100-day SMA should now open room for continuation of the pair's recovery trend back towards the very important 200-day SMA resistance near 0.9800 handle.

Meanwhile on the downside, 0.9700 round figure mark should now protect immediate downside. Failure to defend this immediate support, and a subsequent break below 0.9690 level, might force the pair to head back towards retesting 0.9660 strong horizontal support.