USD/CHF retreats from multi-month highs

The USD/CHF pair failed to sustain its move above 1.0100 handle and trimmed majority of its strong gains to the highest level since early Feb. 

Currently trading, with only marginal gains, around 1.0075 region, the pair witnessed a profit taking slide following the post-US presidential election up-surge of over 550-pips. Market seems to have digested Thursday's comments from the Fed Chair Janet Yellen, which reaffirmed market expectations of an eventual Fed rate-hike action at its meeting next month, with the overall US Dollar Index retreating after hitting the highest level since April 2003.

Further downslide, however, might be limited as the prevalent risk-on sentiment might curb the Swiss Franc's safe-haven appeal and assist the pair to maintain its bid tone. 

Later during NY session, speeches from couple of FOMC members - William Dudley and Esther George, might influence USD price dynamics and provide fresh impetus for the pair.

Technical levels to watch

A follow through selling pressure below session low support near 1.0065-60 region is likely to accelerate the slide towards 100.20 support area before the pair drops back below parity mark. On the upside, momentum back above 1.0100 handle might now boost the pair beyond multi-month high resistance near 1.0120 region towards testing its next major resistance near 1.0180-85 region.

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