USD/CHF clings to strong gains near yearly highs after SNB inaction

The USD/CHF pair had a muted reaction to SNB rate-decision and held on to its strong gains closer to yearly high.

Currently trading around 1.0240 region, today’s SNB decision to leaves its key interest-rates unchanged failed to provide any impetus to the major. However, SNB’s readiness to intervene in the FX market, if needed, and comments that the Swiss Franc is still overvalued, helped the pair to hold steady at multi-month highs. 

Meanwhile, the US Dollar also extended overnight strong gains, led by Wednesday's hawkish FOMC, and is further contributing to the pair’s strong bid tone for the second consecutive day.

Focus now shifts to US economic docket, featuring the release of CPI print for November, Philly Fed Manufacturing Index and weekly jobless claims, which might provide some impetus for short-term traders during NA session.

Technical levels to watch

Sustained move above yearly highs resistance near 1.0250-55 area is likely to open room for further near-term appreciating move for the pair towards 2015 yearly high resistance near 1.0330 region with 1.0300 round figure mark acting as intermediate resistance. On the downside, 1.0215-10 zone, closely followed by 1.0200 handle, now becomes immediate strong support, which if broken might trigger a near-term corrective slide and drag the pair initially towards 1.0170 intermediate support, en-route 1.0115-10 strong support.