Having posted a session low at 0.9875 level, the USD/CHF pair recovered its lost ground and continued with its near-term consolidation phase around 0.9900 handle.
On Tuesday, the pair did jump to 0.9914, the highest level since July 27, following the release of in-line with estimates US CPI print, but quickly retraced back below 0.9900 handle. The pair subsequently dropped to 0.9875 during early Asian session on Wednesday amid safe-haven demand after mixed Chinese macro data. The greenback caught fresh bids at lower levels and has helped the pair to retrace back to 0.9900 handle.
Looking at the broader picture, the pair has been confined within a short-term trading range and has repeatedly failed to build on to its momentum above 0.9900 handle amid uncertainty over the timing of next Fed rate-hike action, which has been the key driver of the US Dollar's strength in the previous couple of weeks.
Going forward, today's US housing data that includes – building permits and housing starts, might provide some impetus for short-term traders, while Fed rate-hike expectations would remain a key driver in the near-term.
Technical levels to watch
Immediate upside resistance is pegged near 0.9910-15 area, which if conquered is likely to trigger a fresh bout of short-covering and lift the pair immediately towards 0.9950 strong resistance. Meanwhile on the downside, sustained weakness below 0.9875 level (session low) might turn the pair vulnerable to break below 0.9860-55 intermediate support and aim towards testing 0.9820-15 horizontal support.