USD/CHF consolidating around 0.9900 handle ahead of US data

The USD/CHF pair held this week's trading range and managed to bounce-off the weekly lows support near 0.9885 level to currently trade above 0.9900 handle.

The pair initially dropped to weekly low level of 0.9885, earlier touched on Monday as USD bulls remained on back foot ahead of some Fed speeches and macro economic data from the US, later during NY session. Today's economic data, which includes durable goods orders for the month of April and weekly jobless claims, would further assist investors in evaluating the possibilities of a June Fed rate-hike decision.

From technical perspective, the pair seems to consolidate after three weeks of relentless rally from multi-month low level of 0.9444 to 11-week high of 0.9938 touched on Tuesday. Hence, today's economic data would determine whether the pair would extend its recovery trend or go through a near-term corrective phase before resuming the up-trend.

Technical levels to watch

Weekly lows near 0.9985-80 zone might continue to extend immediate support, below which the pair seems more likely to correct towards an important moving averages confluence resistance break point, now turned strong support near 0.9835 region.

On the flip side, move beyond nearly 3-month high level resistance near 0.9935-40 zone seems to open room for an immediate dart towards reclaiming parity mark.