USD/CHF surges through parity mark after US economic releases

The USD/CHF pair extended its recovery momentum from session low level of 0.9930 region and has now surged past parity mark following the release of upbeat US economic data.

Currently trading around 1.0015-20 region, the highest level since March, the pair caught fresh bids after US monthly retail sales for October surpassed expectations and came-in to show a monthly growth of 0.8%, while core retail sales (excluding automobiles) also recorded a healthy growth of 0.8% as compared to 0.4% anticipated. The Empire State Manufacturing Index for November also moved into expansion territory for the first time in four months and added on to the positive sentiment surrounding the overall US Dollar Index.

Today's economic data further reinforced market expectations that the Fed would eventually move towards raising interest rates, with CME group's FedWatch Tool now pricing-in 90.0% probability of such an action in December, and provided a fresh impetus for the pair's ongoing bullish momentum since the outcome of US presidential election. 

Technical levels to watch

The momentum seems strong enough to lift the pair towards 1.0030 resistance before the pair eventually darts towards March swing high resistance near 1.0085-90 region. On the downside, 1.00 psychological mark now becomes immediate support to defend, which if broken might trigger a corrective move towards 0.9945 intermediate support en-route an important horizontal support near 0.9915-10 region.