USD/CHF in search of a firm direction

Having posted a session low near 1.0110 region, the USD/CHF pair regained traction and reversed all of its early losses. 

Currently trading around 1.0150 region, resurgent greenback demand, with the key US Dollar Index recovering its lost ground, has been the sole driver of the pair's recovery from session low. Adding to this, a mild recovery in investor sentiment towards riskier assets - like equities and commodities, is further driving flows away from the perceived safe-haven currency, Swiss Franc, and collaborating to the pair's up-move since mid-European session. 

The recovery momentum, however, remained limited as traders now shift their focus to the US President-elect Donald Trump’s first news conference on Wednesday. Also in focus would be speeches from various Fed officials, including the Fed Chair Janet Yellen, which would provide fresh insight over the Fed's monetary policy outlook for 2017 and help investors to determine the pair's next leg of directional move. 

In the meantime, a relatively lighter US economic docket, featuring the only release of JOLTS job openings, might provide some impetus for short-term

Technical levels to watch

Momentum above 1.0170 level is likely to accelerate the recovery towards 1.0200 handle above which the pair seems all set to head back towards its next resistance near 1.0270-75 region. On the flip side, 1.0110-100 area might continue to protect immediate downside. Failure to hold this immediate support, leading to a subsequent break below 50-day SMA support near 1.0085 region, might now turn the pair vulnerable its near-term corrective slide back towards parity mark, with 1.0040 and 1.0020 levels providing some intermediate support.