USD/CHF Continues to Struggle Below 0.9900 Level
Despite of Thursday's recovery from 0.9872 led by Fed Governor Jerome Powell's hawkish comments, the USD/CHF pair continued with its struggle below 0.9900 handle.
The pair on Thursday broke through 0.9900 handle after the USD bulls seemed unimpressed by a better-than-expected headline durable goods orders numbers. The pair also shrugged-off a sharp drop in the weekly jobless claims data.
On the last trading day of the week, the pair is seen consolidating within a narrow trading range, below 0.9900 handle, as investors turn their focus to today's key event risk, the first revision of US Q1 GDP, which is anticipated to show a sizeable upgrade from a 0.5% q-o-q to 0.8% q-o-q growth. Today's US GDP print would play an important role in determining the Fed's monetary policy stance at its upcoming policy meeting in June. A surprisingly strong number would definitely trigger a bullish spike in the USD/CHF pair.
Technical levels to watch
On a sustained strength above 0.9900-05 immediate resistance, the pair seems to head back towards nearly 3-month high resistance near 0.9935-40, which if conquered sets the stage for extension of the bullish momentum towards reclaiming parity mark.
On the flip side, below Thursday low support near 0.9870, the pair seems vulnerable to extend its near-term corrective move towards an important confluence resistance (100 & 200-day SMAs) break-point turned immediate strong support near 0.9835 region.