USD/CHF flirting with session tops, 0.97 handle back on sight

The USD/CHF pair was seen building on Friday's recovery move from sub-0.9600 level and held in positive territory for the second consecutive day. 

Currently placed at session tops, around the 0.9665-70 region, a modest pickup in the US Dollar demand, on easing concerns over the US political tensions, has been one of the key factors driving the pair higher through early European session on Monday. 

It, however, remains to be seen if the pair is able to build on the early up-move or runs through some fresh offers at higher levels amid the prevalent risk-off environment, which tends to underpin the Swiss Franc's safe-haven appeal. 

Moreover, growing market consensus that the Fed is likely to hold back from raising interest rates further and doubts over the US President Donald Trump's pro-growth economic agenda might further contribute towards keeping a lid on any further up-move for the major.

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With an empty US economic docket, the pair remains at the mercy of USD price dynamics and the broader market risk sentiment would remain key determinants of the pair's movement at the start of a new trading week. 

Technical levels to watch

Immediate resistance is pegged near the 0.9700 handle, above which the pair is likely to extend the up-move towards 0.9725 horizontal resistance before darting towards an important supply zone near the 0.9765 region, also coinciding with 100-day SMA. 

On the flip side, 0.9650 level now seems to protect the immediate downside, which is closely followed by support near the 0.9620-15 region. A follow through weakness below the 0.9600 handle might turn the pair vulnerable to break below 0.9585-80 support area and head towards testing its next support near the 0.9650-45 region.