USD/CHF confined in a narrow range above 0.9700 handle

The USD/CHF pair was seen consolidating previous session losses and oscillated within 20-25 pips narrow trading range above the 0.9700 mark.

Wednesday's minutes from the Federal Reserve's latest monetary policy meeting failed to provide any clues over the timing for further Fed rate-hike moves and triggered a sharp slide in the US treasury bond yields, which eventually weighed on the greenback. In fact, the key US Dollar Index has now slipped back closer to six month lows touched earlier this week and seems to be only factor collaborating to the weaker tone surrounding the major.

Meanwhile, the prevalent risk-on environment, which tends to dent the Swiss Franc's safe-haven appeal, was seen lending some support and collaborated towards limiting further downslide, at least for the time being. The pair was last seen trading with only minor losses around 0.9725 level.

Today's US economic docket features the release of trade balance, wholesale inventories and weekly jobless claims and would now be looked upon for some immediate respite for the USD bulls. 

Technical levels to watch

A follow through weakness is likely to find some support near the 0.9700 handle, which if broken would turn the pair vulnerable to extend its near-term downward trajectory towards 0.9680 level ahead of mid-0.9600s important support. On the upside, momentum above 0.9735 level could get extended towards 0.9760-70 resistance area, above which a bout of short-covering could lift the pair back towards the 0.9800 handle.