USD/CHF digesting strong recovery gains back above parity mark

The USD/CHF pair was seen oscillating within 15-pips narrow trading range near two-week highs, just above the parity mark.

Spot seems to have moved in a bullish consolidative phase following its strong recovery over the past three trading session, from 4-month lows touched at the start of this week. A subdued price-action surrounding the key US Dollar Index has failed to provide any fresh bullish impetus for the major. Meanwhile, the prevalent cautious sentiment across global financial markets was seen lending some support to the Swiss Franc's safe-haven appeal, which has eventually led to a range-bounce movement around the major. 

Moving ahead, investors now look forward to the US economic docket and, speeches by New York Fed President William Dudley and Minneapolis Fed President Neel Kashkari for fresh impetus during early NA session. Today's US macro data includes the release of Core PCE Price Index, Personal Income / Spending data, Chicago PMI and Revised UoM Consumer Sentiment.

Technical levels to watch

A follow through buying interest has the potential to lift the pair towards 1.0025-30 horizontal resitance, above which the bullish momentum could get extended towards 100-day SMA strong hurdle near 1.0075 region with 1.0050-55 area providing some intermediate resistance. 

On the downside, retracement below 1.00-0.9990 zone might trigger a corrective slide towards 0.9965 horizontal support, which if broken would turn the pair vulnerable to head back towards the very important 200-day SMA support near 0.9925 region.