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USD/CHF recovers lost ground, aiming to reclaim parity mark

Following a weekly bearish gap opening below 100-day SMA, to 2-1/2 month lows, the USD/CHF pair caught fresh bids and is attempting a move towards reclaiming parity mark.

Growing fears of an increasingly protectionist stance by the US President Donald Trump added on to Friday's dismal US GDP growth numbers for the fourth quarter and weighed heavily on the greenback during Asian session on Monday. 

The pair, however, managed to recover early lost ground amid resurgent in the US treasury bond yields, which provided an immediate respite for the greenback. In fact the key US Dollar Index on the brink of breaking into positive territory and collaborated to the pair's recovery from the lowest level since mid-November. 

Also supporting the pair's recovery was the disappointing release of Switzerland KOF leading indicator, which fell short of market expectations and came-in at 101.7 for January as compared to previous month's 102.1.

Meanwhile, a fresh wave of global risk-off trade has failed to benefit the Swiss Franc's safe-haven appeal and the pair remains solely dependent on the US Dollar price-dynamics. 

Today's US economic docket, featuring the release of Core PCE Price Index, Personal Income / Spending data and Pending Home Sales, would now be looked upon to grab some short-term trading opportunities ahead of this week's key event risks from the US - Fed monetary policy decision on Wednesday and monthly jobs report (NFP) on Friday. 

Technical levels to watch

On a sustained move back above 1.0000 psychological mark, the pair seems to head towards recent trading range resistance near 1.0025-30 zone above which a fresh bout of short-covering is likely to lift it towards 1.0070-75 horizontal resistance.

Meanwhile on the downside, 0.9960-55 region remains immediate support to defend, which if broken has the potential to drag the pair towards 0.9935 intermediate support, en-route 0.9900 round figure mark.

 

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