USD/CHF consolidating strong gains to 9-1/2 month highs
|Having jumped to 1.0200 neighborhood, the highest level since Feb. 3, the USD/CHF pair has retreated around 25-pips from session peak amid thin market liquidity on the back of Thanksgiving Day holiday in the US.
Currently trading around 1.0170 region, nearly unchanged from previous session's closing level, the pair consolidated Wednesday's strong led by upbeat US economic data. The move got an additional boost from hawkish FOMC meeting minutes, which not only reinforced speculation for a December rate-hike but also seems to have fueled expectations that the Fed will keep tightening its monetary policy to prevent the economy from overheating.
The pair, however, failed to further extend the momentum as traders seemed inclined to take some profits off the table following post-US presidential election sharp up-move of around 650-pips. In fact, the overall US Dollar Index trimmed some of its early gains to 13-1/2 year highs and has now turned flat.
Moreover, today’s Swiss industrial production data, that showed a sharp rebound during the third-quarter of 2016, provided some respite for the Swiss Franc and might have also contributed to the pair’s retracement from multi-month highs.
Technical levels to watch
Weakness below session low support near 1.0145 is likely to exert further selling pressure and drag the pair back towards previous resistance, now turned support, near 1.0120 area. Meanwhile on the upside, 1.0185 area now becomes immediate hurdle, which if cleared should now assist the pair to surpass 1.0200 handle and lift it towards its next major resistance near 1.0230 region.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.