USD/CHF seems to regain bullish traction, back above 0.9850

Although trading in a narrow band, the USD/CHF pair is making an attempt to regain its bullish traction and is currently hovering around 0.9850-60 region. 

On Thursday, the pair touched a 7-week high level of 0.9900 but lost its upside momentum and dropped to 0.9840 level and was supported by better-than-expected trade balance data from Switzerland. 

The fall, however, was tepid and short-lived, with the pair quickly moving back above 200-day SMA as incoming positive US economic data continues to boost expectations of at-least one Fed rate-hike during 2016.

Currently CME group's Fed Fund rates future is pricing-in around 40% probability of such an action in December, which continues to boost sentiment surrounding the greenback.

With an empty economic docket on Friday, the pair is unlikely to witness volatile moves but might still be headed for fifth consecutive week of gains. 

Technical levels to watch

On the upside, 0.9900 handle remains immediate hurdle, which if conquered seems to boost the pair towards May monthly high resistance near 0.9950. Meanwhile on the downside, any corrective move is likely to be short-lived and could be bought into around 0.9825-20 horizontal support.