USD/CHF surrenders early gains to near one-month tops
| • Post-NFP USD weakness prompts profit-taking.
• Fading safe-haven demand might help limit downside.
• On track for its first weekly gains in the previous five.
The USD/CHF pair stalled its bullish trajectory near the 0.9975-80 region and eroded majority of its early gains to one-month tops following mixed US jobs data.
Despite a beat on the headline NFP print, softer average hourly wage growth failed to provide any additional boost to the US Dollar and prompted traders to take some profits off the table, especially after the pair's strong up-move of over 240-pips since last Friday.
The pair, however, has managed to hold in positive territory for the fifth consecutive session amid the prevalent risk-on environment, which tends to weigh on the Swiss Franc's safe-haven appeal.
Meanwhile, the latest wave of optimism over the US tax reform plan might continue to underpin the greenback and help limit any deeper losses, at least for the time being.
Nevertheless, the pair is all set to snap its four consecutive weeks of losing streak and end on a positive note as investors now look forward to next week's big event risk - the highly anticipated FOMC meeting.
Technical levels to watch
Bulls would be eyeing for a clear break through the parity mark, above which the pair seems to aim towards testing Nov. monthly highs resistance near the 1.0035-40 region.
On the flip side, corrective slide below 0.9940 level could get extended back toward the 0.9900 handle, below which the pair seems vulnerable to retest 0.9850-45 horizontal support.
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