USD/CHF mildly positive above 1.0100 handle

The USD/CHF pair was seen oscillating within a tight trading range, with mild positive bias, and struggled to build on Tuesday's recovery move from 3-week lows.

Currently hovering around 1.0100 handle, the pair has failed to gain a follow through traction as investors turned cautious ahead of influential central bank monetary policy meetings of ECB and the Federal Reserve, and following the pair's volatile price action since the beginning of current trading week. 

The pair on Monday reversed sharply and broke below its recent trading range, albeit managed to reverse all of the losses on Tuesday. Looking at the broader picture, the recent price-action could be categorized as near-term consolidative phase before the next leg of directional move.

Hence, next week's FOMC meeting will remain on investor radar, which might provide some insight over the Fed's monetary policy stance in 2017 and eventually provide fresh impetus for the pair's near-term trajectory in either direction. 

Technical levels to watch

Immediate resistance is seems at 1.0120 level above which the pair is likely to aim towards 1.0160 horizontal resistance and the momentum could further get extended towards an important resistance near 1.0180-85 region. On the downside, 1.0080-70 zone now seems to act as immediate support, which if broken is likely to accelerate the slide towards 1.0055-50 important support before the pair eventually drops to retest parity mark.