USD/CHF retakes 1.0100 and beyond amid renewed USD strength

Following Monday's brief pause, the USD/CHF pair resumed with its near-term bullish momentum and has now reversed yesterday's corrective slide.

Currently trading back above 1.0100 handle, testing daily tops, spot prices regained traction and accelerated its up-move closer to over 9-month highs touched last week after disappointment from Swiss trade balance data. According to the data released just a short while ago, Swiss trade surplus fell more than expected and came-in to show a surplus of 2.678 million as compared to 3.890 million expected and 4.325 million recorded in September. 

Moreover, increasing December Fed rate-hike expectations and prospects of fiscal stimulus following Donald Trump's victory in the US presidential election continues to underpin the greenback and helped the greenback to recover Monday's lost ground. Moreover, the prevalent risk-on mood, as depicted by buoyant sentiment surrounding equity markets, is further driving flows away from the perceived safety of the Swiss Franc and is thus, supporting the pair's recovery from session low level of 1.0067. 

Moving ahead, today's release of US existing home sales data would be looked upon to grab some short-term trading opportunities. Meanwhile, Wednesday's US monthly durable goods orders and FOMC meeting minutes would provide fresh impetus for the pair's near-term trajectory ahead of next week's key US monthly jobs report. 

Technical levels to watch

A follow through buying interest beyond Friday's multi-month high resistance near 1.01230 seems to assist the pair further towards testing yearly highs resistance near 1.0250 region. On the downside, 1.0100 handle now become immediate support below which the pair seems to head back towards 1.0070 support area. Sustained weakness below 1.0070 support could get extended towards 1.0020-15 horizontal support before the pair eventually breaks below parity mark to test its next major support near 0.9960-50 region.