USD/CHF in search of a firm direction, range-bound above mid-0.9500s

After an initial dip to 0.9540 level, the USD/CHF pair regained traction and was seen trying to build on previous session's strong recovery move.

Currently trading in neutral territory, around 0.9560-70 band, bulls seemed lacking strong conviction amid subdued US Dollar price action. The downslide, however, remains supported by the prevalent risk-on environment and fading safe-haven demand. 

Easing concerns over N. Korea and Hurricane Irma continues to prompt unwinding of safe-haven bets and was seen weighing on the Swiss Franc.

Moreover, a minor uptick in the US Treasury bond yields should help the greenback to extend overnight strong recovery move. Hence, a follow through recovery move, beyond the 0.9600 handle, now seems a distinct possibility.

On the economic data front, the release of JOLTS Job Openings data from the US is likely to pass unnoticed, with the broader market risk sentiment and USD price dynamics acting as key determinants of the pair's movement through Tuesday's trading session.

Technical levels to watch

Momentum beyond 0.9580 level could get extended towards the 0.9600 handle, above which a bout of short-covering could accelerate the up-move towards 0.9635-40 horizontal resistance. 

On the flip side, sustained weakness below 0.9540-30 immediate support would turn the pair vulnerable to head back towards retesting the key 0.9500 psychological mark, before eventually dropping back closer to 2-year lows touched last Friday.