USD/CHF hangs closer to 6-month lows

After yesterday's volatile price-action, the USD/CHF pair came under some renewed selling pressure but has managed to hold its neck above the 0.9700 handle.

Currently trading around 0.9720-25 region, the pair remains within striking distance of over 6-month lows touched in the previous session amid persistent US Dollar selling interest. The latest Trump controversy raised doubts over his ability to deliver on promised pro-growth economic policies and has been weighing on the US Dollar.

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Adding to this, tragic news of a suspected terrorist attack in the city of Manchester provided an additional boost to the Swiss Franc's safe-haven demand and was seen restricting any meaningful recovery for the major, despite of the recent sharp drop of over 400-pips from one-month high level of 1.0100 level touched on May 11. 

Meanwhile, market seems to have largely ignored a larger than expected drop in trade surplus data from Switzerland, with broader market risk-sentiment turning out to be an exclusive driver of the pair's movement through early European session on Tuesday.

Next in focus would be US economic docket, featuring the release of manufacturing data and new home sales data, which would be looked upon for some trading impetus later during the NA session. 

Technical levels to watch

Weakness back below the 0.9700 handle could get extended towards 0.9680 support, below which the pair seems vulnerable to head towards 0.9640-35 intermediate support en-route 0.9600 handle. On the upside, any recovery attempts might continue to confront immediate resistance near 0.9745-50 region (session tops), which if cleared might trigger a short-covering rally back towards the 0.9800 handle ahead of 0.9825 resistance area.