USD/CHF confined in a range around mid-0.9700s

The USD/CHF pair extended its overnight consolidative price action and remained confined within a 15-20 pips narrow trading range around mid-0.9700s.

The US Dollar struggled to gain any follow through traction, despite yesterday's stronger macro data and potential US tax reforms. Adding to this, a modest retracement around US Treasury bond yields also seemed capping any up-move for the greenback. 

Moreover, the prevalent cautious environment was seen extending some support to the Swiss Franc's safe-haven appeal and eventually failed to assist the pair to build on overnight sharp up-move from the 0.9700 neighborhood. 

Meanwhile, the latest comments from the SNB Chairman Thomas Jordan, that FX market situation is still fragile and that the Swiss franc is still strong, also did little to help the pair to break through its narrow trading range. 

Today's US economic docket features the release of weekly jobless claims, trade balance and factory orders data, which along with speeches by the Fed Governor Jerome Powell and Philadelphia Fed President Patrick Harker would now be looked upon for some fresh impetus.

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Technical levels to watch

Momentum beyond 0.9770 immediate hurdle is likely to confront resistance near the 0.9800 handle, above which the pair is likely to dart towards testing the very important 200-day SMA, currently near the 0.9835-40 region.

On the flip side, 0.9730 level is likely to act as immediate support, which if broken is likely to accelerate the fall towards the 0.9700 handle en-route 0.9675 intermediate support and 100-day SMA near the 0.9655-50 region.