USD/CHF turns positive, refreshes session tops near 0.9735

After an initial dip to 0.9712, the USD/CHF pair gained some positive traction and jumped to fresh session tops near 0.9735 region.

The pair caught some fresh bids at lower level and the latest leg of up-move could be attributed to short-covering after bears failed to drag the pair further below the 0.9700 handle.

Traders even shrugged off a better-than-expected jump in Swiss trade surplus, coming-in at CHF 3.4 billion for May as compared to CHF 1.96 billion recorded in the previous month, and the prevalent cautious environment, which tends to benefit the Swiss Franc's safe-haven appeal.

It, however, remains to be seen if the pair is able to build on the up-move amid softer tone surrounding the US Treasury bond yields on receding expectations for additional Fed rate-hike move in 2017, which has failed to extend any support to the US Dollar. 

Later during the NA session, the weekly jobless claims data would be looked upon for some trading impetus ahead of Federal Reserve Governor Jerome Powell's testimony before the US Senate Committee on Banking.

Technical levels to watch

Immediate resistance is pegged near 0.9750 region, above which the pair is likely to aim towards reclaiming the 0.9800 handle with some intermediate resistance near 0.9775-80 area.

On the downside, 0.9710-0.9700 area remains immediate support to defend, which if broken is likely to accelerate the slide towards 0.9655-50 region ahead of 0.9625-20 strong support.