USD/CHF sits at session tops, beyond mid-0.9600s

The USD/CHF pair held on to its recovery gains and is currently placed at fresh session tops near the 0.9655 region. 

With investors looking past Friday's dismal US inflation figures, a modest US Dollar recovery, always backed by a pickup in the US Treasury bond yields, prompted traders to lighten their bearish bets and has been one of the key factors driving the pair higher. 

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Adding to this, a sharp turnaround in investors' risk appetite, as depicted by strong gains in the European equity markets, further dented the Swiss Franc's safe-haven appeal and collaborated to the pair's up-move at the start of a new trading week. 

The up-move, however, lacked any strong follow through traction as investors remained cautious amid rising geopolitical tensions between the US and N. Korea. Moreover, traders also seemed reluctant to place aggressive bets ahead of this week's key event risks - US monthly retail sales and the FOMC meeting minutes. 

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Hence, today's up-move could be solely attributed to short-covering amid absent fundamental drivers, in terms of any major market moving economic releases.

Technical levels to watch

A strong follow through buying interest beyond mid-0.9600s might trigger a short-covering rally and lift the pair back towards the 0.9700 handle en-route its next major hurdle near the 0.9740-45 region. 

On the flip side, 0.9615 level now seems to protect the immediate downside, below which the pair could now break back below the 0.9600 handle and continue sliding further towards its next support near the 0.9555-50 region.