USD/CHF retreats after hitting fresh one-month high

The USD/CHF pair traded with mild negative bias and has now dropped to fresh session low near 1.0075 level, reversing all of its previous session's gains to fresh one-month high.

Having failed just ahead of the key 1.0100 psychological mark, traders seemed inclined to take some profits off the table following its recent up-surge of over 200-pips over the past three-trading sessions.

Meanwhile, a modest US Dollar pull-back, led by subdued US treasury bond yields, could also be one of the factors leading to the pair's retracement from the highest level since April 10.

Also collaborating to weaker tone surrounding the pair was slightly cautious opening for the European equity markets, which tends to benefit the Swiss Franc's safe-haven appeal.

Today's minor pull-back would still be seen as corrective in nature amid near-term overbought conditions, especially with the pair sustaining its break through important moving averages (200-day and 100-day SMAs). 

Today's US economic docket, featuring the release of weekly jobless claims and PPI print could act as a fresh catalyst for short-term traders ahead of Fedspeaks.

Technical levels to watch

A follow through retracement below 1.0070 level could extend the corrective slide towards 100-day SMA support near 1.0040 region, below which the pair is likely to break below the parity mark and head towards testing 0.9985 horizontal support. On the upside, the 1.0100 handle remains immediate hurdle, which if conquered would pave way for continuation of the pair's up-ward trajectory towards its next major resistance near 1.0135-40 region.