USD/CHF clings to recovery gains at 0.9635

The USD/CHF pair is seen building on to its Friday's recovery gains from 8-week lows and is now trading comfortably above 0.9600 handle, around 0.9635-40 band.

On Friday, the pair's bounce-off the lowest level since June 23 and stalled five consecutive days of losing streak, primarily led by short-covering ahead of this week's macro releases from the US, which includes - durable goods orders and second estimate of GDP print for Q2 2016. 

Meanwhile, markets participants will remain focused on the Fed Chair Janet Yellen's speech at the Jackson Hole Symposium, which would be looked upon for fresh cues over the central bank's monetary policy outlook for the rest of 2016 and to determine the greenback's near-term direction.

Technical levels to watch

On the upside, 0.9658 (August 17 high) seems to act as immediate resistance, above which the recovery momentum is likely to get extended towards 0.9700 handle. A follow through buying interest has the potential to continue boosting the pair towards an important confluence resistance near 0.9735-45 region (100-day and 50-day SMAs).

Meanwhile on the downside, 0.9600 round figure mark is likely to protect immediate downside, which if broken should turn the pair vulnerable to head back towards 0.9550-45 support area before extending its near-term downward trajectory towards 0.9500 psychological mark support.