USD/CHF stuck in a narrow trading range around mid-1.0200s

The USD/CHF pair was seen oscillating within a narrow trading band and remained below 1.0300 handle for the second consecutive day.

Currently trading around mid-1.0200s, the pair's ongoing corrective slide could be attributed to profit taking following its recent up-surge to the highest level since August 2010. Moreover, the prevalent cautious sentiment around European equity markets is driving flows towards the traditional safe-haven currency, Swiss Franc, and exerting some selling pressure around the major on Monday. However, hawkish Fed statement - forecasting more interest-rate hikes in 2017, might continue to underpin the greenback and limit any sharp near-term corrective slide for the major. 

A relatively thin US economic docket, featuring the release of Markit’s US flash services PMI print for December, is unlikely to provide any impetus for the major and hence, investors this week will remain focused on final reading of US GDP growth for third quarter of 2016, scheduled on Thursday. The final GDP print would be looked upon for fresh indications over the strength of the US economy, eventually influencing market expectations of future Fed monetary policy stance and providing fresh impetus for the pair's next leg of directional move.

Technical levels to watch

Immediate downside support is pegged at 1.0240 (session low) below which the pair is likely to aim towards testing 1.0200 round figure mark ahead of 1.0175-70 support. On the upside, momentum above 1.0270 (session peak) could get extended towards 1.0300 handle, which if cleared has the potential to lift the pair back towards last week's multi-week high resistance near 1.0340-45 region.