USD/CHF trading neutral around 0.9700 handle

The USD/CHF pair continued with its range-bound price action and remained capped at 0.9700 handle to currently trade in neutral territory around 0.9700 region.

Following Tuesday's sharp slide, led by disappointing US ISM non-manufacturing PMI, the pair seems to have entered a consolidation phase. Any attempted recovery back above 0.9700 handle is being sold into but further downslide has also been limited, clearly indicating indecisiveness amid growing uncertainty over the Federal Reserve's next monetary policy action at its meeting on September 20-21.

In absence of major economic releases on Thursday, the pair would continue to be driven by the prevalent sentiment surrounding the greenback and could take cues from Today's ECB monetary policy decision. Later during NA session, traders will confront the release of US weekly jobless claims data. 

Technical levels to watch

On the downside, 0.9670 (yesterday's low) seems to provide immediate support, which if broken is likely to accelerate the slide immediately to 0.9640-35 support before the pair eventually drops to test sub-0.9600 support. On the flip side, sustained recovery above 0.9700-0.9710 immediate resistance, seems to assist the pair back towards 100-day SMA support break-point, now turned resistance, near 0.9750 region.