USD/CHF surrenders early tepid gains, hangs closer to multi-month lows

The USD/CHF pair ran through some fresh offers near 0.9760 region and reversed part of Friday's recovery gains from closer to 6-1/2 month lows. 

A subdued performance around the US treasury bond yields failed to provide any additional boost to the US Dollar's early up-move and help the pair to build on Friday's up-move led by an upward revision of the US GDP growth numbers. 

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Meanwhile, the prevalent cautious environment, in wake of N. Korea's latest ballistic missile test, was also seen lending some support to the Swiss Franc's safe-haven appeal and further collaborated to the pair's retracement from higher levels. 

Looking at the broader picture, the pair seems to have entered a consolidative phase and has failed to register any meaningful recovery from the lowest level since the US Presidential election touched last week. Hence, reemergence of selling interest at higher levels, clearly seems to suggest that the pair's near-term downward trajectory might still be far from being over.

With the US markets closed in observance of Memorial Day, holiday-thinned liquidity conditions might trigger some unusual volatility amid lack of any fresh fundamental drivers. 

Technical levels to watch

Immediate support is pegged near 0.9725 region, below which the pair might turn vulnerable to break through multi-month lows support near 0.9700-0.9690 support area and aim towards its next important support near 0.9650-45 region. 

On the flip side, 0.9760 area now seems to have emerged as immediate strong resistance, which if cleared decisively might trigger a short-covering bounce towards the 0.9800 handle en-route 0.9825-30 strong horizontal resistance.