USD/CHF retraces from 5-day high, holding with minor gains

Having risen to a 5-day high level of 0.9652, the USD/CHF pair lost its upside momentum and retraced few pips from session high and is currently trading around 0.9635-30 band. 

A broad based US Dollar recovery on Wednesday, supported by Tuesday's release of stellar new home sales data from the US, assisted the pair to extend its up-move for fourth straight session. However, renewed greenback selling pressure across the board during European session restricted further appreciating move.

However, near-term trajectory remains dependent on the much-awaited Fed Chair Janet Yellen's speech at Jackson Hole Symposium on Friday, which would be looked upon for fresh clues over the central bank's near-term monetary policy stance. 

In the meantime, traders will focus on today's release of existing home sales from the US in order to grab short-term momentum play.

Technical levels to watch

Further weakness below session low support near 0.9625, leading to a subsequent break below 0.9600 round figure mark, is likely to turn the pair vulnerable to head back towards retesting 0.9550-45 support area before extending its near-term downward trajectory towards 0.9500 psychological mark support.

Meanwhile on the upside, 0.9650 area remains immediate hurdle and strong bullish momentum above this immediate resistance has the potential to lift the pair immediately towards 0.9700 handle, above which the recovery trend is likely to get extended towards an important confluence resistance near 0.9735-45 region (100-day and 50-day SMAs).