USD/CHF remains below 0.96 handle, 100-DMA ahead of US CPI

   •  Reviving safe-haven demand underpins CHF and caps early uptick.
   •  Persistent USD bearish sentiment does little to lend support.
   •  Investors eye US CPI/FOMC minutes for fresh directional impetus.

The USD/CHF pair struggled to build on overnight tepid rebound from one-week lows and failed just ahead of the 0.9600 handle. 

With markets still digesting the recent US-China trade conflicts, renewed geopolitical tensions underpinned the Swiss Franc's safe-haven demand and kept a lid on the pair's modest uptick. 

The latest leg of retracement slide since the early European session accelerated further following the US President Donald Trump's aggressive response to the Russian ambassador to Lebanon Alexander Zasypkin's overnight comments.

This coupled with persistent bearish sentiment surrounding the US Dollar further collaborated towards capping the pair's steady climb at 100-day SMA hurdle. 

Despite the two-way move, within a narrow trading range, the pair seemed lacking conviction as investors now look forward to the latest US consumer inflation figures and minutes from the last FOMC meeting minutes for some fresh directional impetus.

Technical levels to watch

Bulls would be eyeing for a clear break through the 0.9600 handle, above which the pair is likely to make a fresh attempt towards clearing the very important 200-day SMA barrier near the 0.9655-60 region.

On the flip side, 0.9555-50 area might act as an immediate support, which if broken might now turn the pair vulnerable to slide further towards testing the key 0.9500 psychological mark.