USD/CHF remains well-offered below 0.9700 after US ISM release

Release of US ISM manufacturing PMI data for July failed to provide any respite, with the USD/CHF pair trading just few pips off session low.

The Institute for Supply Management's (ISM) index showed a slightly slower-than-expected growth in the US manufacturing sector during the month of July.

ISM manufacturing PMI dropped to 52.6 in July from 53.2 in the previous month and missed expectations of a modest decline to 53.0. The index, however, remained above the 50.0 threshold, which separates expansion from contraction.

The US Dollar, as measured by the US Dollar index, had a muted reaction after the release and the USD/CHF pair remained well offered below 0.9700 handle. 

Technical levels to watch

On a sustained move above 0.9700 handle, the recovery is likely to get extended immediately towards 100-day SMA resistance near 0.9730 region, above which the pair seems all set to retest 50-day SMA support turned strong resistance near 0.9770 region. On the flip side, renewed selling pressure below 0.9650 immediate support, leading to a subsequent break below Friday's swing low near 0.9635 level, would increase the pair's vulnerability to drop below 0.7600 handle and test 0.7580 strong support.