USD/CHF extends range-bound action, US macro data awaited

The USD/CHF pair faded a spike to weekly high level near 1.0030 region and has now tipped back below parity mark.

Currently trading around 0.9990-95 band, testing session lows, the pair remained confined within a narrow trading range just above 100-day SMA and has been consolidating its recent slide of over 350-pips since the beginning of 2017, led by ongoing fears over the US President Donald Trump’s protectionist stance. 

Meanwhile, renewed optimism over Trump reflation led stronger US economic growth has lent support the US Dollar's recovery from Thursday's 7-week lows, but has failed to provide any fresh impetus for the pair's near-term direction. Even the prevalent risk-on mood across global equity markets, which tends to weigh on the Swiss Franc's safe-haven appeal, has failed to provide any short-term trading opportunities for short-term traders. 

Hence, investors keenly await for today's US economic docket, featuring the release of advance Q4 GDP growth numbers and durable goods orders, which might assist the pair to break through the 50-60 pips narrow trading range and determine the next leg of directional move. 

Technical levels to watch

A convincing break below 100-day SMA support near 0.9975 region is likely to accelerate the slide towards 0.9950 level ahead of 0.9920-15 support area. On the upside, sustained move above 1.0025-30 zone seems to boost the pair towards 1.0060 horizontal resistance before head towards reclaiming 1.0200 handle.