USD/CHF consolidating recent gains to multi-month highs

The USD/CHF pair once again failed to extend its appreciating move beyond 0.9950 level and has now erased early gains to currently trade with only marginal gains around 0.9935-40 band.

After an initial up-tick closer to multi-month highs, the pair fell in tandem with a broad based greenback retracement. The overall US Dollar Index was seen cooling off a bit after hitting a new eight-month high touched earlier on growing expectations of an eventual Fed rate-hike action by the end of this year, given that Hillary Clinton is likely to win at the upcoming US presidential elections.

In absence of any fresh economic developments, the pair's current price-action could be categorized as consolidation phase before the next leg of directional move.

Today's US economic docket featurs the release of Conference Board's Consumer Confidence Index and might provide short-term trading opportunities. Also in focus would be speeches from ECB President Mario Draghi and BoE Governor Mark Carney, which might infuse volatility in the markets and derive demand for perceived safe-haven currencies, including the Swiss Franc and eventually provide some impetus for the USD/CHF major. 

Technical levels to watch

A strong bullish momentum above 0.9950 immediate hurdle now seems to pave way for extension of the pair's near-term upward trajectory further towards reclaiming parity in the near-term. On the downside, 0.9920-15 area seems to act as immediate support. Weakness below this immediate support is likely to be bought into and hence, should be limited at around 0.9900 handle.