USD/CHF extends Tuesday’s reversal from parity mark

The USD/CHF pair extended Tuesday reversal from parity mark and has now reversed all of its gains recorded in the previous session.

Currently trading near session low around 0.9925-30 band, the pair ran through fresh offers at higher level on Wednesday as the US Dollar was seen struggling to extend its upward trajectory amid lack of fresh impetus that prompted near-term profit-booking from Tuesday's multi-month high level at the very important parity mark. 

Meanwhile, weaker opening for the European equity markets drove safe-haven flows towards the Swiss Franc and contributed to fresh selling pressure during early European session. 

Today's US economic docket features the release of new home sales data and flash services PMI for October and would be looked upon to grab some short-term trading opportunities. However, the next big fundamental trigger would come from other important US macro data that include - monthly durable goods orders on Thursday and advance Q3 GDP print on Friday, and would assist investors to determine the next leg of directional move for the pair.

Technical levels to watch

From current levels, 0.9915 (weekly low) seems to protect immediate downside below which the pair seems to immediate break below 0.9900 handle and test 0.9890 support level. On the upside, any recovery might now confront immediate resistance near 0.9945 level. On a sustained move above this immediate hurdle, leading to a subsequent momentum above 0.9955 resistance (session high), the pair seems to make a fresh attempt towards testing parity mark for the first time since March.