USD/CHF climbs further beyond 0.9700 handle, three-day tops

   •  The post-NFP up-move continues for the second straight session on Monday.
   •  Bullish traders seemed largely unaffected by a modest USD retracement.
   •  Slight improvement in risk sentiment weighs on CHF and provides a minor boost.

The USD/CHF pair continued gaining positive traction for the second consecutive session on Monday and was seen building on the post-NFP recovery move from over 4-1/2 month lows.

Friday's upbeat US monthly jobs report, especially strong wage growth data, cemented September Fed rate hike expectations and provided a strong lift to the US Dollar and helped the pair to recover around 60-pips from an intraday low level of 0.9642, the lowest since April 17. 

The pair continued with its recovery move at the start of a new trading week and gained further beyond the 0.9700 handle. The up-move seemed largely unaffected by a modest USD retracement, albeit a positive tone around the US Treasury bond yields remained supportive.

Meanwhile, a slight improvement in risk sentiment, as depicted by stability across European equity markets, weighed on the Swiss Franc's safe-haven appeal and was seen as one of the key factors behind the pair's up-move to three-day highs, around the 0.9730-35 region.

There isn't any major market-moving economic data due for release from the US and hence, the broader market risk sentiment/USD price dynamics might continue to act as key determinants of the pair's momentum on Monday.

Technical levels to watch

Any subsequent up-move is likely to confront immediate resistance near the 0.9755-60 region, above which the pair seems more likely to extend the recovery move towards reclaiming the 0.9800 handle. On the flip side, the 0.9700 handle now seems to protect the immediate downside, which if broken might turn the pair vulnerable to head back towards challenging multi-month lows, around the 0.9640 area.