USD/CHF retakes 0.97 handle and beyond, Yellen's speech eyed

The USD/CHF pair regained some fresh traction on Tuesday and has now recovered previous session’s sharp retracement slide from closer to over one-month tops. 

Currently holding comfortably above the 0.9700 handle, the pair was seen benefitting from persistent greenback buying interest, with the key US Dollar Index hitting fresh multi-week highs. 

Meanwhile, escalating geopolitical tensions over the Korean peninsula, and the prevalent cautious sentiment around European equity markets, did little to lend any support to the Swiss Franc's safe-haven appeal and stall the pair's strong up-move to the 0.9715-20 region.

Traders now look ahead to the US economic docket, featuring the release of CB Consumer Confidence Index and new home sales data, for some fresh impetus ahead of a key speech by the Fed Chair Janet Yellen. 

   •  US: Focus on Yellen - TDS

Technical levels to watch

Any further bullish momentum beyond 0.9725 level might continue find resistance near mid-0.9700s, above which a fresh bout of short-covering has the potential to lift the pair to August monthly highs resistance near the 0.9770-75 region ahead of the 0.9800 handle.

On the flip side, any retracement back below the 0.9700 handle now seems to find fresh buying interest at 100-day SMA support near the 0.9770-65 region. A follow through weakness back below the mentioned support would turn the pair vulnerable to aim towards testing the 0.9600 round figure mark.