USD/CHF retreats back below 1.0100 ahead of US data

The USD/CHF pair reversed all of its gains to 1.0120 resistance area, the highest level since early Feb., and has now turned flat ahead of US economic data.

Currently trading nearly unchanged from yesterday's closing, around 1.0085-90 band, the pair remains in near-term consolidation phase following its relentless up-surge of over 550-pips post US presidential election. Anticipated aggressive fiscal stimulus from Trump administration coupled with growing expectations of an imminent Fed rate-hike action at its December meeting has been the key factors driving the overall US Dollar Index to its highest level since April 2003. 

Bulls, however, took breather and the pair now seems to have moved in a near-term consolidation phase as market participants now look forward to this week's FOMC meeting minutes to reaffirm their expectations of December Fed rate-hike decision, which would eventually determine the pair's near-term trajectory. 

In the meantime, today's US economic docket featuring the release of existing home sales and Richmond manufacturing index will be looked upon to grab some short-term trading opportunities.

Technical outlook

A team of analysts at AceTrader notes, "Today, dlr's retreat fm 1.0116 suggests choppy trading below last Fri's 8-month peak at 1.0124 would continue n below 1.0057/70 would bring stronger retracement to 1.0030/35. Abv 1.0124 would extend marginal gain but 'bearish diver gences' on hourly indicators would cap dlr at 1.0161."

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