USD/CHF inching closer to 1.0200 handle

After consolidating Thursday's sharp up-surge for majority of the European trading session, the USD/CHF pair gained fresh traction and has now jumped to fresh weekly high.

Currently trading around 1.0190 region, the pair is fast approaching 1.0200 round figure mark, multi-month high touched in the previous week. Investors continue to build on their US Dollar long positions amid growing expectations of faster Fed rate-hike action in 2017 in wake of higher inflation and faster economic growth led by President-elect Donald Trump’s promises of aggressive fiscal spending. 

Meanwhile, the prevalent upbeat sentiment around equity markets is further weighing on traditional safe-haven currencies - like the Swiss Franc, and is supportive of the pair's strong bid tone for the second consecutive session.

The preliminary release of UoM's Consumer Sentiment index for December, which is expected to better previous month's reading, might now provide the required momentum to lift the pair through 1.0200 handle.

Technical levels to watch

A follow through buying interest above 1.0200 handle now seems to pave way for continuation of the pair's upward trajectory further towards yearly highs resistance near 1.0255-60 region. Alternatively, failure to clear 1.0200 immediate hurdle, and a subsequent drop below 1.0150 level (session low) is likely to drag the pair back towards 1.0100 round figure mark.