USD/CHF hits two-week tops, inching closer to 0.9700 handle

The USD/CHF pair continued gaining traction through early European session and has now jumped to fresh multi-day tops near 0.9680-85 region.

The pair built on Friday's recovery move from sub-0.9600 level and a modest pick-up in the US Treasury bond yields, which underpinned the US Dollar demand, lifted the pair back closer to near two-week highs touched last Wednesday. 

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Apart from rising US bond yields, a mildly positive sentiment surrounding European equity markets further weighed on the Swiss Franc's safe-haven appeal and collaborated to the pair's strong up-move for the third consecutive session. 

Today's US economic docket features the release of JOLTS Job Openings and Final Wholesale Inventories might provide some trading impetus during early NA session.

The key focus, however, would be on the Fed Chair Janet Yellen's semiannual testimony on Wednesday and Friday's important US macro data, which would help investors to determine the next leg of directional move for the major.

Technical levels to watch

A follow-through buying interest beyond 0.9685-90 region (July 5 high) is likely to lift the pair towards 0.9725 horizontal resistance ahead of its next important hurdle near mid-0.9700s.

On the flip side, immediate support is now pegged near 0.9655-50 region, below which the pair could slide back towards the 0.9600 handle en-route 0.9585-80 support.