USD/CHF spiked above 0.96 on USD rebound

After dropping to its lowest level since November 9 at 0.9583, the USD/CHF pair staged a recovery before the NA session went underway. With a quick 50-pip jump, the pair spiked to a fresh session high at 0.9641 but struggled to gather further momentum. At the moment, the pair is trading at 0.9609, up 0.06% on the day.

A recent story by Bloomberg claimed that ECB President Draghi's comments on Tuesday were intended to be balanced and the market misjudged them according to an ECB source. The greenback, which had been aggressively sold against its major rivals on Tuesday, took the opportunity to recover some of its losses. The US Dollar Index rebounded from its lowest level in more than eight months and pushed above the 96 handle. At the moment, the index is at 96.10, down 0.08% on the day.

• ECB: Market misjudged Draghi's speech on stimulus on Tuesday

Now markets will be closely watching the statements from central bank presidents at the ECB Forum. 

• ECB Forum: Draghi, Poloz, Kuroda and Carney – Live speeches

Technical outlook

With the latest upsurge, short-term indicators started to correct their oversold reading but another fresh leg up seems unlikely unless it's supported by a fundamental development. 0.9640 (daily high) could be seen as the initial hurdle ahead of 0.9695/0.9700 (20-DMA) and 0.9760 (Jun. 19 high). On the downside, supports locate at 0.9580 (daily low), 0.9550 (Nov. 9 low) and.9500 (psychological level).