USD/CHF turns flat around mid-96s ahead of Yellen's testimony

After easing to a fresh session low at 0.9617, the USD/CHF pair was able to erase its daily gains to before the FOMC Chairwoman Janet Yellen delivers the second part of her Congressional testimony. As of writing, the pair is trading at 0.9660, up 10 pips on the day.

Today's price action seems to be technical so far as the economic calendar during the European session didn't offer any data that could bring volatility to the market. After Yellen testifies before the Senate Banking Committee at the top of the hour, FOMC members Evans and Brainard will also cross the wires later in the session.

Yesterday, Yellen adopted a relatively dovish tone as she said that interest rates were close to a "neutral" level. She further added that the bank was planning to start shrinking its massive balance sheet later this year. Although the US Dollar Index came under pressure during Yellen's remarks yesterday, it didn't have a difficult time recovering its losses to close the day virtually unchanged. At the moment, the index is at 95.56, up only 0.01% on the day.

• Janet Yellen Speech: Congressional Testimony - Day 2 - Live

Technical outlook

Short term momentum indicators for the pair show a neutral outlook in the near-term. 0.9695 (Jul. 11 high) could be seen as the initial resistance for the pair ahead of 0.9735 (Jun. 26 high) and 0.9800 (psychological level/May 30 high). On the downside, short-term supports are located at 0.9645 (20-DMA), 0.9600 (psychological level) and 0.9550 (Jun. 29 low).

• Fed: Yellen was dovish yesterday? - BBH