USD/CHF digesting Thursday’s strong gains

The USD/CHF pair was seen consolidating Thursday's sharp recovery move from 3-week lows, to 4-day peaks, and was confined within 25-pis narrow band.

Currently trading in neutral territory, around 1.0160 region, the pair on Thursday reversed all of its weakness to the lowest level since Nov. 17 and surged closer to weekly high amid resurgent US Dollar buying interest, primarily led by intense selling pressure around the shared currency surprise ECB decision to taper its bond purchase program to €60 billon per month and extended it until December 2017. 

Moreover, Thursday's weekly jobless claims from the US continued reflecting the underlying strength in the US labor market and reinforced market expectations of a faster Fed rate-tightening cycle, beyond next week's meeting, and provided an additional boost the prevalent bullish sentiment surrounding the greenback. Hence, market participants will remain focused on the upcoming FOMC meeting on December 13-14 in order to evaluate possibilities and timing of next Fed rate-hike decision in 2017, which would eventually help determine the next leg of directional move for the major.

Meanwhile, today's release of Prelim UoM Consumer Sentiment index from the US might provide some short-term trading opportunities later during NA session.

Technical levels to watch

From current levels, 1.0175-80 area is likely to act as immediate resistance above which the pair seems more likely to surpass 1.0200 handle and head towards testing yearly highs resistance near 1.0255-60 region. On the downside, any weakness below 1.0140 immediate support might now be bought into and hence, could be limited at an important support near 1.0100 psychological mark.