USD/CHF struggling for direction, stuck in a range around mid-0.9700s ahead of Fed minutes

The USD/CHF pair struggled to extend early up-move to 3-day highs, and has now been confined in a narrow trading range just above mid-0.9700s. 

A cautious opening in the European equity markets, coupled with a modest retracement in the US treasury bond yields, was seen lending some support to the Swiss Franc's safe-haven appeal and seems to be a key factor failing to provide any fresh bullish impetus for the major. 

Meanwhile, the US Dollar also seems to have entered a bullish consolidation phase and did little to assist the pair to build on yesterday's recovery from the vicinity of six-month lows touched on Monday. 

Investors on Wednesay would remain focused on the much awaited FOMC meeting minutes in order to reaffirm June Fed rate-hike expectations and would also be looked upon for clues over the timing of next rate-hike action, which would help determine the pair's next leg of directional move. 

In the meantime, today's US economic docket, featuring the release of existing home sales data, might help traders to grab some short-term trading opportunities. 

Technical levels to watch

Immediate resistance is pegged near 0.9775 level, above which a bout of short-covering could lift the pair beyond the 0.9800 handle towards its next major hurdle near 0.9820-25 region. On the downside, retracement below mid-0.9700s now seems to find some support near 0.9735-30 area, which if broken would turn the pair vulnerable to break below the 0.9700 handle towards testing its next major support near 0.9685 level.