USD/CHF retakes 1.0100 handle

After an initial dip to 1.0070 region, the USD/CHF pair regained traction and now seems to be attempting a move further beyond the 1.0100 handle.

Rising market expectations that the Fed would raise interest rates at its upcoming meeting on March 14-15 continues to underpin the US Dollar demand and assisted the pair to reverse part of Friday's corrective slide. On Friday the pair witnessed a sharp reversal as investors preferred to lock-in some profits, despite the Fed Chair Janet Yellen reaffirmed possibilities of a March Fed rate-hike action.

Earlier during Asian session, the pair dropped to multi-day lows in wake of a global risk-off trade, which tends to benefit the Swiss Franc's safe-haven appeal, after North Korea fired four ballistic missiles into the sea off Japan’s northwest coast. However, easing geopolitical tensions now seems to be denting demand for traditional safe-haven assets and collaborated to the pair's recovery. 

Later during the day, the US factory orders will be looked upon for some short-term trading opportunities. However, the broader trend would remain dependent on the release of keenly watched NFP data on Friday.

Technical levels to watch

Momentum above 1.0110 level is likely to get extended towards 1.0140 resistance (Feb. 22 high), above which the pair seems to head towards testing 1.0170 horizontal resistance before eventually aiming to reclaim 1.0200 round figure mark. On the flip side, retracement back below 1.0090 level, leading to a subsequent drop below session low support near 1.0070 area, should now drag the pair below 100-day SMA support near 1.0040-35 region towards retesting parity mark.