USD/CHF steadies below 0.9700

FXStreet (Mumbai) - The US dollar bounced-off 0.97 handle and traded flat in the early European morning, erasing previous gains and taking USD/CHF away from session highs largely on the back of a fading recovery seen in the US dollar versus its major competitors.

USD/CHF hovers around 0.9670

Currently, the USD/CHF trades modestly flat at 0.9670 levels, retreating from day’s highs previously posted at 0.9695, just shy away from 097 barrier. The pair remained below 0.97 handle as the Swiss franc stood resilient versus its US counterpart, despite a minor recovery in the US dollar across the board after the buck shed over 100 pips against the Swiss franc on Monday following existing home sales which slightly missed forecasts in March.

The US dollar index which measures the relative strength of the greenback against a basket of six major currencies trades at 97.30, recording a 0.10% gain on the day.
Moreover, Rabobank said in a research note on Monday that “CHF net positions turned positive for the first time since May 2014. The SNB refrained from further policy stimulus last week,” also supported the Swiss currency.

Meanwhile, traders focus on US CPI data to be released later in the day for fresh incentives on the pair.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9700 levels and above which it could extend gains to 0.9813 levels. To the downside, immediate support might be located at 0.9636 levels and below that at 0.9600 levels.

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