USD/CHF pare losses ahead of US durable goods orders

Having stalled four consecutive days of bullish momentum, the USD/CHF pair dropped to 0.9641 before retracing back to currently trade with only marginal losses around 0.9660 region ahead of US economic releases. 

The Swiss Franc shrugged disappointing industrial production data that showed output decline sharply by 1.2% during the second quarter as compared to a 1.2% growth recorded in the first quarter of 2016.

However, a broad based greenback recovery assisted the pair to bounce-off session lows amid cautious trade ahead of this week's key event risk, the Fed Chair Janet Yellen's speech on Friday at the Jackson Hole Symposium. 

In the meantime, short-term traders will take cues from today's release of durable goods orders and weekly jobless claims data from the US for immediate impetus. 

Technical levels to watch

Sustained bullish momentum above weekly high resistance near 0.9680 region has the potential to lift the pair beyond 0.9700 handle, towards an important confluence resistance near 0.9735-45 region (100-day and 50-day SMAs).

Meanwhile, renewed weakness back below 0.9650, leading to a break below session low support near 0.9640 level, is likely to drag the pair immediately towards 0.9600 round figure mark, below which the pair seems vulnerable to head back towards retesting 0.9550-45 support area before extending its near-term downward trajectory towards 0.9500 psychological mark support.