USD/CHF snaps five-days of winning streak

After once again failing to extend its momentum beyond parity mark, the USD/CHF pair retreated on Tuesday and snapped its five consecutive days of winning streak. 

Currently trading around 0.9960 region, the pair's retracement on Tuesday, from Monday's eight-month high, has been primarily driven by a broad based greenback weakness. In absence of any major fundamental development, the ongoing slide could be attributed to profit-taking following its recent rally led by increasing hopes of an eventual Fed rate-hike action.

With CME group's FedWatch Tool pricing in over 85.0% probability of a Fed action in December, the pair is unlikely to witness a sharp slide and any corrective move could be short-lived. 

Investors on Tuesday will look forward to US economic docket, featuring the release of monthly retail sales and Empire State Manufacturing Index, for fresh impetus for the pair's next leg of move in either direction. 

Technical levels to watch

Immediate support is pegged near 0.9940 level below which the corrective slide could further get extended towards 0.9910-0.9900 strong horizontal support. A follow through selling pressure below 0.9900 handle has the potential to drag the pair towards its next major support near 0.9865-60 region.

On the upside, 0.9975 now becomes immediate hurdle, which if conquered is likely to assist the pair back towards parity mark. A convincing move above 1.0000 psychological mark should now pave way for an additional up-move towards March swing high resistance near 1.0085-90 area.