USD/CHF rallies back closer to 0.96 handle

After yesterday's sharp pullback, the USD/CHF pair regained some fresh traction on Thursday and spiked back closer to previous session's swing highs, around the 0.9580 region.

The pair on Wednesday tumbled nearly 100-pips from session tops amid broad based US Dollar sell-off in reaction to the FOMC statement, which noted that inflation remains below target and fueled speculations that the central bank would remain cautious over further monetary policy tightening. 

A modest pickup in the US Treasury bond yields extended some support to the US Dollar and drove the pair higher through the mid-European session. Moreover, possibilities of some stops being triggered, on a decisive move back above mid-0.9500s might have also collaborated to the pair's sharp surge over the past hour or so.

With market seems to have digested the less hawkish Fed decision, the pair is more likely to make a fresh attempt to reclaim the 0.9600 handle and extend its near-term recovery trend from multi-month lows touched at the beginning of this week. 

Next in focus would be the US economic data, featuring the release of durable goods orders, goods trade balance data and weekly jobless claims, which would be looked upon for some fresh bullish impetus for the major.

Technical levels to watch

A follow through buying interest beyond the 0.9600 handle has the potential to continue boosting the pair further towards 0.9630-35 intermediate resistance en-route June daily closing highs resistance near 0.9670-75 region.

On the downside, any retracement back below mid-0.9500s now seems to find immediate support near 0.9525 level ahead of the key 0.95 psychological mark.