USD/CHF clings to strong gains for second consecutive session

The USD/CHF pair held on to its daily gains through early NA session and is currently placed at session tops near 0.9670-75 region.

The pair built on Friday's recovery move from sub-0.9600 level and has now jumped back closer to near two-week highs touched last Wednesday.  With the US Dollar extending post-NFP up-move, a fresh wave of risk-on trade was further seen weighing on the Swiss Franc's safe-haven appeal and drove the pair higher for the second consecutive session. 

Meanwhile, traders seemed to have largely ignored a modest retracement in the US Treasury bond yields, which a mildly bullish sentiment surrounding the greenback collaborating to the pair's strong up-move at the start of a new trading week. 

Today's US economic docket features the release of Labor Market Conditions Index but is unlikely to provide any trading impetus as investors' focus remains on this week's important US macro data - monthly retail sales and inflation figures, preceded by the Fed Chair Janet Yellen's testimony. 

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Technical levels to watch

Bulls would be eyeing for a follow through buying interest beyond 0.9685-90 region (July 5 high), above which the pair is likely to dart towards 0.9725 horizontal resistance ahead of the next important hurdle near mid-0.9700s.

On the flip side, immediate support is pegged near 0.9640-35 region, which if broken is likely to accelerate the slide back towards the 0.9600 handle en-route 0.9585-80 support.