USD/CHF soars through 0.9700 handle to 7-day high

The USD/CHF pair's recovery from session low gained further traction, lifting the pair to a 7-day high level and assisting to build on to its momentum above 0.9700 handle.

Currently trading near session high around 0.9740-45 region, the pair's sharp recovery could be attributed to short-covering following its reluctance to break through 09660-50 area. Moreover, possibility of stops getting triggered above 0.9700 handle could have further contributed to the pair's up-surge in the past few hours.

Next on tap would be a slew of US economic releases, which includes the Fed's preferred inflation gauge - Core PCE Price Index, Personal Income and Spending data, Chicago PMI and Revised UoM Consumer Sentiment. 

From technical perspective, the pair is sustaining its move to 50-day SMA immediate resistance and hence, a follow through buying interest above 100-day SMA hurdle, might trigger a fresh bout of short-covering and help the pair to continue scaling higher.

Technical levels to watch

Immediate upside resistance is seen at 0.9755 (100-day SMA) above which the pair seems all set to aim towards retesting the very important 200-day SMA resistance near 0.9800 handle with some intermediate resistance near 0.9780 level.

On the flip side, 0.9735 now becomes immediate support to defend. Weakness below this immediate support might now be limited and hence, is likely to find support near 0.9710-0.9700 area.