USD/CHF bears remain in control, 0.97 at risk?

The USD/CHF pair extended previous session's sharp reversal move from 1-1/2 week tops, just above the 0.9800 handle, and remained heavily offered for the second consecutive session. 

A fresh wave of greenback selling pressure, with the key US Dollar Index dropping back to the 97.00 handle, has been a key factor weighing on the major. Moreover, a sharp pull-back in the US treasury bond yields did little to stall the downslide and the pair has now moved within striking distance of over six month lows touched last week.

Meanwhile, upbeat trading sentiment around equity markets failed to boost the Swiss Franc's safe-haven appeal and has helped the pair to defend the 0.9700 handle, at least for the time being. The pair has managed to bounce off few pips from lows and is currently trading around 0.9715 region.

It, however, remains to be seen if the bears maintain their dominance through early NA session as traders now look forward to the US economic docket, featuring the release of Chicago PMI and Pending Home Sales data, for some immediate respite.

Technical levels to watch

A convincing break through multi-month lows support near 0.9700-0.9690 area would turn the pair vulnerable to accelerate the slide towards mid-0.9600s ahead of 0.9630-25 horizontal support. 

On the flip side, any recovery attempts beyond 0.9730-35 area now seems to confront strong hurdle near 0.9770 region, which if cleared should help the pair to surpass the 0.9800 handle towards testing its next major resistance near 0.9855-60 zone.