USD/CHF sticks to recovery gains above 200-DMA

   •  Extends overnight steady recovery move from over one-month lows. 
   •  An uptick in the US bond yields/improving risk appetite supporting the up-move.
   •  US consumer confidence data and Fedspeaks to provide fresh impetus.

The USD/CHF pair gained some positive traction for the second consecutive session on Tuesday and built on previous session's steady recovery move from over one-month lows. 

The pair has been finding decent support near the 0.9780-75 region and has now rebounded back above the very important 200-day SMA amid a follow-through US Dollar buying interest. 

Monday’s stronger-than-expected US housing market data, coupled with firming hopes for December Fed rate hike move, reinforced by a modest uptick in the US Treasury bond yields, provided some immediate respite for the USD bulls. 

Adding to this, a slight improvement in investors' appetite for riskier assets, as depicted by a positive trading sentiment around equity markets, was also seen weighing on the Swiss Franc's safe-haven appeal and further collaborated to the pair's uptick on Tuesday.

Currently trading around 0.9830 level, traders now look forward to the release of US CB consumer confidence index and speeches from influential FOMC members, along with the Fed Chair Designate Jerome Powell's testimony, for some fresh impetus. 

Technical levels to watch

Immediate resistance is pegged near mid-0.9800s, above which a fresh bout of short-covering could lift the pair towards 0.9880 horizontal resistance en-route the 0.9900 handle. 

On the flip side, weakness back below the 0.9805-0.9800 region (200-DMA) would turn the pair vulnerable to resume with its depreciating slide and head towards testing 100-day SMA support near the 0.9730-25 region.