USD/CHF on the verge of breaking below 1.0100 handle

The USD/CHF pair remained well offered for the third consecutive day and is now headed back towards 1.0100 important psychological mark support.

The prevalent cautious sentiment, as depicted the weakness around European equity market, is driving safe-haven demand for the Swiss Franc and is exerting some selling pressure around the major. Moreover, subdued US Dollar price-action, as investors anxiously await for an update over the Federal Reserve's monetary policy outlook for 2017, has also failed to attract any buying interest and lend support to the pair's ongoing corrective slide from 10-month highs touched last week.

From technical perspective, the pair has repeatedly failed to conquer 1.0200 handle. Hence, a sustained weakness below 1.0100 mark might confirm rejection and turn the pair vulnerable to continue with its corrective slide further in the near-term.

Ahead of the much awaited FOMC rate-decision, traders would confront coupled of important US macro data - monthly retail sales and PPI, during early NA session and would be looked upon for some immediate respite. 

Technical levels to watch

A convincing break below 1.0100 handle is likely to accelerate the slide immediately towards 1.0060-55 horizontal support before the pair eventually drops to retest parity mark. On the upside, recovery momentum above session peak resistance near 1.0125 region seems to lift the pair towards 1.0160-65 horizontal resistance above which the pair seems to make a fresh attempt to conquer 1.0200 handle.
 

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