USD/CHF clings to strong gains above 1.0100 level, US GDP in focus

After seesawing between early losses and tepid recovery gains in the previous session, the USD/CHF pair caught fresh bids on Tuesday and is now holding comfortably above 1.0100 handle. 

Currently trading at session peak level of 1.0140, the pair on Monday regained traction and recovered early lost ground after the Organization for Economic Cooperation and Development (OECD) upgraded US economic growth projection for 2017 and 2018. The pair extended overnight momentum amid resurgent greenback strength, as measured by the overall US Dollar Index.

Later during NA session, the first revision of US GDP growth rate for the third quarter of 2016, followed by Consumer Confidence index, will be looked upon to grab short-term trading opportunities. Meanwhile, the broader sentiment would continue to be driven by any fresh development / news surrounding OPEC output deal ahead of the official meeting on Wednesday and Friday's monthly jobs report from the US, popularly known as NFP.

This week's US macro data will help investors determine the pace and timing of next Fed rate-hike action in 2017. With December Fed rate-hike decision fully priced-in, upbeat US economic data would increase possibilities of a faster Fed rate-tightening cycle and should trigger a fresh leg of up-move for the major.

Technical levels to watch

Immediate upside resistance is pegged near 1.0168 (yesterday's high), which if cleared decisively now seems to assist the pair to surpass 1.0200 handle and aim towards testing yearly highs resistance near 1.0250-55 region. On the downside, 1.0110-1.0100 region is likely to protect immediate downside below which the pair is likely to accelerate the slide towards 1.0080 support area en-route 1.0015-10 strong support.