USD/USD clings to tepid recovery gains at 0.9700 handle

The greenback seems to have lost its recovery momentum, with the USD/CHF pair trimming some of its early recovery gains to 0.9715 from Thursday's two-week low near 0.9660 region. 

Currently hovering around 0.9700 handle, the pair has failed to register any meaningful recovery following a sharp sell slide of nearly 150-pips in just two trading session from the very important 200-day SMA. Having faced repeated rejections at 200-day SMA region, the finally broke below an important confluence support near 0.9750 region after Fed decided to leave its monetary policy unchanged, which disappointed bulls and weighed heavily on the pair.

With an empty economic docket on Friday, the pair would continue to clues from the prevalent sentiment surrounding greenback recovery.

Technical levels to watch

Session high near 0.9715 remains immediate resistance to watch for, which if cleared might trigger a fresh bout of short-covering and assist the pair further towards an important support break-point, turned resistance, near 0.9750-55 region. 

On the downside, sustained weakness below session low support near 0.9685 region would now turn the pair vulnerable to break through 0.9650 support and head towards testing its next major support near 0.9615 level.