USD/CHF confined in a narrow trading band

The USD/CHF pair was confined within a narrow trading on Friday and continued with its near-term consolidative price action near multi-month highs. 

Currently trading in neutral territory around 0.9935 region, increasing bets for an expected rate-hike by the Federal Reserve continues to underpin the US Dollar and has limited any immediate corrective slide near 0.9900 handle. The pair has been confined within a broader trading range throughout the course of current trading week and has even ignored the recent slide in equity market, which tends to benefit traditional safe-haven currencies, including Swiss Franc.

Focus now shifts to the preliminary release of US GDP print for the third quarter of 2016, later during NA session. Today's economic growth number would influence market expectations over the timing of next Fed rate-hike decision and would eventually help investors to determine the next leg of directional move for the pair.

Technical levels to watch

On the upside, 0.9945-50 area is seen as immediate resistance above which the pair seems all set to aim back towards parity market. Meanwhile on the downside, sustained weakness below 0.9910-0.9900 weekly lows support is likely to drag the pair immediately towards 0.9870 horizontal support before the pair extends the downslide further towards 0.9800 handle.