USD/CHF trims tepid recovery gains, seems vulnerable to slide further

The USD/CHF pair ran through some fresh offers and has now surrendered early tepid recovery gains to session high near 1.0045 region. 

Currently trading around 1.0020 region, the pair has now moved back closer to parity mark amid some renewed US Dollar selling emerging during early European session. Meanwhile, a mild cautious sentiment around riskier space, with major European indices reversing early gains, is also lending support to the Swiss Franc's safe-haven appeal and collaborating to the pair's retracement from daily peak.

From technical perspective, the pair on Tuesday decisively broke below 38.2% Fibonacci retracement level of 0.9549-1.0344 strong post-election up-surge and is now reversing after retesting the mentioned support break-point. The bearish technical set-up suggests continuation of the pair's corrective move in the near-term and hence, any bounce-back might now be looked upon as opportunity to initiate fresh short-positions. 

On the US economic data front, the release of CPI print, capacity utilization and industrial production, are scheduled for release during early NA session. Later during NY session, the Fed Chair Janet Yellen's speech would also be in focus and provide fresh impetus for the pair's next leg of directional move.

Technical levels to watch

Immediate downside support is pegged near parity mark below which the pair is likely to slide towards 100-day SMA support near 0.9965 region ahead of 50% Fibonacci retracement level support near mid-0.9900s.

On the upside, 1.0040-45 region now becomes immediate resistance, which if cleared might trigger a short-covering bounce towards 1.0080-85 horizontal resistance, en-route 1.0100 round figure mark.