USD/CHF reclaims 1.0300 handle ahead of US ISM PMI

The greenback extended its bullish trajectory, helping the USD/CHF pair to reverse over 175-pips from Friday's swing low and reclaim 1.0300 handle.

Currently trading around 1.0310 region, the pair caught fresh bids on Tuesday amid strong greenback buying interest across the board. Growing expectations that President-elect Donald Trump's proposed fiscal spending would lead to a faster US economic growth is underpinning demand for the US currency and lifted the key US Dollar Index to the highest level since December 2002. 

Moreover, the prevalent risk-on mood, as depicted by positive sentiment surrounding equity markets, is further denting the Swiss Franc's safe-haven demand and collaborating to the pair's strong bid tone on Tuesday. 

Next in focus would be the US ISM manufacturing PMI, which is expected to tick higher for December and might attract a fresh wave of US Dollar buying interest during NY trading session.

Technical levels to watch

Immediate resistance on the upside is pegged near 1.0321 (Dec. 28 high) above which the pair is likely to aim back towards multi-year highs resistance near 1.0344 (Dec. 15 high). A convincing move above 1.0345 resistance the pair seems all set to head towards reclaiming 1.0400 handle. 

On the downside, 1.0285 now seems to protect immediate downside, which if broken is likely to drag the pair back towards 1.0220 horizontal support. A follow through weakness below 1.0220 support would expose sub-1.0200 support near 1.0175 region.