USD/CHF rises above 0.96 as greenback gains traction

The USD/CHF pair gathered momentum in the early NA session and moved above the 0.96 handle to refresh its session high 0.9616. As of writing, the pair was trading at 0.9607, adding 0.5% on the day.

The pair upsurge seems to be fueled by the ongoing USD recovery on Tuesday. Amid a lack of fresh fundamental catalysts, the greenback was able to extend its technical correction gains, pushing the US Dollar Index to a new session high at 92.05. At the moment, the index was at 92.01, up 0.1% on the day. Moreover, after recording robust earnings on Monday, major equity indexes in the U.S. started the day higher again on Tuesday with the Dow Jones Industrial Average and the S&P 500 both gaining 0.3% at the moment.

The economic calendar won't be featuring any data that could impact the pair's price action in the remainder of the day, and the market sentiment is likely to continue providing direction. On Wednesday, Producer & Import Prices from Switzerland will be released ahead of the PPI data from the United States. 

Technical levels to consider:

The pair could encounter the first technical hurdle at 0.9645 (100-DMA) ahead of 0.9700 (psychological level/Aug. 23 high) and 0.9765 (Aug. 16 low). On the downside, supports align at 0.9575 (20-DMA), 0.9500 (psychological level) and 0.9430 (Aug. 29 low). The RSI indicator on the daily graph is unable to provide any clues regarding the next short-term direction as it moves sideways near the 50 mark.

• USD/CHF allows for a near term rebound – Commerzbank