USD/CHF struggles to stay above 0.99, sticks to modest daily gains

• USD/CHF refreshes 3-day high at 0.9910.
• Market reaction to data from the U.S. stays limited.
• US Dollar Index consolidates near 93.

After spending the last two days in a tight range below the 0.99 mark, the USD/CHF pair advanced to its best level since Monday at 0.9910 in the early NA session but struggled to preserve its bullish momentum. As of writing, the pair was trading at 0.9890, up 0.2% on the day.

Earlier today, the data from the U.S. showed that weekly jobless claims increased by 20K while the third quarter real GDP growth an annual basis declined to 3.2% from the second reading of 3.3%. Other data revealed that both the Chicago Fed National Activity Index and Philly Fed Manufacturing Index both improved slightly. Although the initial market reaction to the data pulled the DXY to a session low near 92.85, the index retraced its losses as investors refrained from taking significant positions ahead of the Christmas break. As of writing, the index was flat on the day at 92.95.

In the meantime, major equity indexes in the U.S started the day on a positive note and continued to push higher as investors are finally cheering the tax legislation. The improved market sentiment in the session doesn't allow the traditional safe-haven CHF to gain strength against its rivals.

Technical levels to consider

The pair could encounter the immediate resistance at 0.9905/10 (50-DMA/daily high) ahead of 1.0000 (psychological level) and 1.0040 (Nov. 1 high). On the downside, supports are located at 0.9830 (Dec. 20 low), 0.9790 (100-DMA) and 0.9730 (Dec. 1 low). The RSI indicator on the daily chart is moving sideways near the 50 mark, showing a near-term neutral outlook for the pair.