Having posted a session low at 0.9875 level, the USD/CHF pair recovered its lost ground and continued with its near-term consolidation phase around 0.9900 handle.
On Tuesday, the pair did jump to 0.9914, the highest level since July 27, following the release of in-line with estimates US CPI print, but quickly retraced back below 0.9900 handle. The pair subsequently dropped to 0.9875 during early Asian session on Wednesday amid safe-haven demand after mixed Chinese macro data. The greenback caught fresh bids at lower levels and has helped the pair to retrace back to 0.9900 handle.
Looking at the broader picture, the pair has been confined within a short-term trading range and has repeatedly failed to build on to its momentum above 0.9900 handle amid uncertainty over the timing of next Fed rate-hike action, which has been the key driver of the US Dollar's strength in the previous couple of weeks.
Going forward, today's US housing data that includes - building permits and housing starts, might provide some impetus for short-term traders, while Fed rate-hike expectations would remain a key driver in the near-term.
Technical levels to watch
Immediate upside resistance is pegged near 0.9910-15 area, which if conquered is likely to trigger a fresh bout of short-covering and lift the pair immediately towards 0.9950 strong resistance. Meanwhile on the downside, sustained weakness below 0.9875 level (session low) might turn the pair vulnerable to break below 0.9860-55 intermediate support and aim towards testing 0.9820-15 horizontal support.
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 securities. 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 Forex 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.