USD/CHF erases early recovery gains, turns negative at 0.9680

The USD/CHF pair erased its early tepid recovery gains to 0.9700 handle and has now turned back into negative territory to currently trade near session low level around 0.9680-85 region.

Last week on Friday, the pair extended its sharp reversal from two-month highs and dropped to a 6-week low level as the greenback came under intense selling pressure after the release of disappointing print for US GDP growth for second-quarter of 2016. Although the pair managed to bounce-off session low but still closed as two-month low, below 0.9700 for the first time since June 23. 

A tepid rebound in greenback provided some respite for the pair on Monday. However, a fresh bout of US Dollar session seems to have emerged during European trading session, dragging the pair lower for fourth consecutive data. 

Next on tap would be the release of US ISM manufacturing PMI, which is scheduled for release later during NA session and would assist traders to determine further direction to the major.

Technical levels to watch

On the downside, 0.9650 seems to act as immediate support, below which the pair now seems to break through Friday's session low and head towards testing its next major support near 0.9580 region. On the flip side, recovery momentum above 0.9700 round figure mark seems to boost the pair towards 100-day SMA support turned resistance near 0.9730-35 region ahead of 50-day SMA resistance near 0.9770 region.