USD/CHF gathers pace for further upside, 0.9700 eyed?

The USD/CHF pair paused its ongoing bullish run and now drifts slightly lower in early trades, largely on the back of a minor-correction posed by the greenback amid pre-Fed trading.

USD/CHF making higher highs on daily sticks

Currently, the USD/CHF pair trades -0.13% lower at 0.9665, easing-off session tops reached at 0.9674. USD/CHF moved lower from weekly lows after the US dollar corrects a part of yesterday’s versus its major peers, as markets resort to repositioning ahead of Fed Chair Yellen’s speech.

Market Analyst at Swissquote Bank noted, "Yellen is expected to provide better insight regarding the scale and timing of the normalization process initiated last December, especially after several Fed members, including Vice Chair Stanley Fischer, dropped some hawkish comments during press conferences."

Besides, we also have the US GDP report lined up for release later in the American morning, although the data is expected to virtually have no impact on the market.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9700 (20-DMA) and above which it could extend gains to 0.9755/61 (100 & 50-DMA). To the downside, immediate support might be located at 0.9628 (10-DMA) and below that 0.9585 (Aug 18 low).