USD/CHF: Upside remains capped below 0.9650 post-Swiss trade

The USD/CHF pair is seen closely tracking the USD price-action, as investors gear up for the Jackson Hole Symposium scheduled later this week for fresh momentum.

USD/CHF: Risk-on underpins

The spot stalled its overnight recovery mode just shy of 0.9650 barrier, as the CHF bulls remain unimpressed by a generally stronger Swiss trade report, which showed that the trade surplus expanded to 3.51 billion versus 2.88 billion expected and 2.76 billion last.

The recovery in the major seen so far this session is mainly driven by risk reset, which curbed the demand for the Swiss Franc as a safe-haven. Further, improved appetite for risk assets lifted the US yields across the curve, which lent support to the broad USD bounce, in turn boosting the USD/CHF pair higher.

Amid a lack of relevant economic data from the US data, the pair will continue to take cue from the USD dynamics and risk trends for near-term trading opportunities.

USD/CHF Technical levels                

To the topside, a daily close above 0.9650/56 (10-DMA) would shift risk in favor of a re-test of 0.9712 (100-DMA) beyond which 0.9767 (Aug 16 high) would be back on sight. A break below 0.9601/00 (Aug 21 low/ zero figure) would open doors for 0.9584/82 (intermittent lows). A break lower would yield a test of 0.9500 (key support).