USD/CHF drops to session low ahead of US data

The USD/CHF pair's attempted up-move towards 0.9950 region got sold into and the pair dropped into negative territory for the second straight session. 

Currently trading at a fresh session low around 0.9915 region, the pair has now reversed majority of its Wednesday's rebound led by better-than-expected US goods trade balance and services PMI print. Bearish sentiment surrounding European equity market is driving safe-haven flows towards the perceived safe-haven currency, Swiss Franc, and is exerting selling pressure around the major. 

However, market expectations of an eventual Fed rate-hike action before the end of this year might continue supporting the bid tone around the US Dollar and restrict any sharp corrective slide for the pair. 

Later during NA session, US monthly durable goods orders and pending home sales data will be looked upon for short-term trading opportunities, while Friday's US GDP print would be a key determinant of the pair's trajectory in the near-term. Traders on Friday will also confront the release of a gauge that measures the direction of the Swiss economy over the next 6 months, KOF Economic Barometer, and might provide some impetus.

Technical levels to watch

Immediate downside support is pegged around 0.9900 handle, which if broken is likely to accelerate the corrective slide immediately towards 0.9870 support. On the upside, 0.9945-50 area seems to have emerged as strong resistance and on a sustained move above this immediate hurdle, the pair is likely to aim back towards parity mark.