USD/CHF give-up some of its Monday’s gains, drops close to 0.9600 handle

After failing to extend corrective bounce beyond 0.9650 level, the USD/CHF pair resumed with its near-term downward bias and is now inching back towards 0.9600 handle to currently trade at 0.9615-10 band.

Of late, the greenback has been driven solely on changing expectations over an eventual Fed rate-hike action and hence, Sunday's hawkish comments from the Fed vice chair Stanley Fischer boosted the major on Monday. However, the strength turned out to be short-lived, with the pair trimming some of its Monday's gains, as investors remained cautious ahead of the Fed chairwoman Yellen's address at the Jackson Hole symposium later this week. 

Moving ahead, today's US economic releases of new home sales data and Richmond Manufacturing Index could provide some immediate momentum play for short-term traders.

Technical levels to watch

Renewed weakness back below 0.9600 round figure mark is likely to turn the pair vulnerable to head back towards retesting 0.9550-45 support area before extending its near-term downward trajectory towards 0.9500 psychological mark support.

Meanwhile on the upside, 0.9650 area remains immediate hurdle and strong bullish momentum above this immediate resistance has the potential to lift the pair immediately towards 0.9700 handle, above which the recovery trend is likely to get extended towards an important confluence resistance near 0.9735-45 region (100-day and 50-day SMAs).