A fresh bout of US Dollar buying interest emerged during early European trading session and helped the USD/CHF pair to erase all of its early losses to session low near 0.9885 level.
Currently hovering around 0.9900 handle, the pair last week jumped to 11-week high level amid increasing odds of an eventual Fed rate-hike action by the end of this year. Spot prices, however, struggled to clear a strong hurdle near 0.9900-0.9910 supply zone and seem to have entered consolidation phase before the next leg of directional move in either direction.
In absence of any relevant economic data during European session, broader sentiment surrounding the greenback would be the sole driver ahead of Empire State Manufacturing Index, Capacity Utilization Rate and Industrial Production data from the US later during NA trading session.
Technical levels to watch
On a sustained move above 0.9900 handle, the pair seems all set to aim towards July monthly high resistance near 0.9950 region before making an attempt towards reclaiming parity mark. On the downside, weakness below 0.9880 support (session low) is likely to get extended towards 0.9855 horizontal support, which if broken is likely to drag the pair immediately towards 0.9820 support ahead of its next major support near 0.9800 handle.