USD/CHF recovers swiftly, jumps to 0.9900 neighborhood

Following a down-tick to session low level of 0.9835, the USD/CHF pair found some strong buying interest that assist the pair to erase early losses and jump to 0.9900 neighborhood. 

On Tuesday, the US Dollar bulls remained on the back foot primarily led by the greenback's heavy losses against its Japanese counterpart. However, reviving hopes of an imminent Fed rate-hike later during 2016 kept the early downfall limited as focus now shifts to the very important Federal Reserve monetary policy decision announcement on Wednesday. 

The accompanying monetary policy statement would be closely scrutinized in order to determine the timing of next Fed rate-hike decision. Currently the CME group's Fed Fund rate futures are pricing-in around 43% probability of Fed action in December. 

In the meantime, short-term traders will look forward to today's release of CB consumer confidence index and new home sales data in order to grab some short-term trading opportunities.

Technical levels to watch

The pair is likely to gain further traction if it manages to conquer 0.9900 handle, above which retest of May highs resistance near 0.9950 seems given. Alternatively, reversal from 0.9900 strong resistance, and a subsequent weakness back below 200-day SMA support near 0.9855-50 region, now seems to drag the pair below session through level, towards testing 0.9820 important horizontal support.