USD/CHF reverses part of Friday’s steep loss
|The USD/CHF pair staged a recovery bounce on Monday and reversed part of Friday's sharp slide closer to mid-0.9800s.
Currently trading around 0.9885 region, the pair on Friday came under intense selling pressure on news of FBI probe on Clinton's email linked to an earlier investigation over handling of classified information as state secretary.
However, growing market expectations of an eventual Fed rate-hike provided downside support and helped the pair to witness a tepid recovery back towards 0.9900 handle
Later during NA session, US economic docket that include the release of Core PCE Price Index (Fed's preferred inflation gauge), personal income / spending data and Chicago PMI will provide fresh impetus.
From technical perspective, the pair on Friday found support and is rebounding from 38.2% Fibonacci retracement level of 0.9640-0.9999 up-move. Hence, Friday's sell-off could be categorized as a corrective slide within a well-established near-term up-trend.
Technical levels to watch
Immediate upside resistance is pegged near 0.9900 handle above which the pair is likely to extend the recovery momentum further towards 0.9930 strong horizontal resistance. On the downside, renewed weakness below 0.9870 immediate support now seems to drag the pair below Friday's swing low towards its next support near 0.9840.
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