USD/CHF corrects within near-term trading range

The USD/CHF pair witnessed a corrective slide on Thursday but has held within two-week old 100-pips broader trading range. 

Currently trading around 1.0255-50 region, the pair, on Wednesday, once again failed to sustain its move above 1.0300 psychological mark and trimmed early gains after disappointing pending home sales data from the US. The US Dollar extended overnight reversal and is further weighed down by a sharp slide in the US Treasury bond yields. 

Looking at the broader picture, the pair is reversing from the top end of near-term trading range and Thursday's weakness would still be categorized as consolidation following the pair's post-US presidential election and hawkish Fed outlook-led strong up-surge of around 800-pips to the highest level since August 2010. 

In absence of any major market moving economic releases, traders on Thursday will take cues from the usual weekly jobless claims and goods trade balance data from the US, due later during NA session. 

Technical levels to watch

Immediate support is pegged near 1.0220, closely followed by 1.0200 round figure mark. Break below 1.0200 handle is likely to drag the pair towards 1.0170-65 horizontal support. On the flip side, 1.0295-1.0300 area remains immediate strong resistance, which if conquered has the potential to lift the pair back towards last week's multi-year highs resistance near 1.0340-45 region.