USD/CHF retraces to 0.9930 after US durable goods data

The USD/CHF pair retraced from nearly two-month high level and trimmed some of its early gains to currently trade around 0.9930 region after the release of US durable goods orders.

Data released on Wednesday showed US durable goods orders for June contracted by 4% on a monthly basis and was more-than-expected 1.1% drop. Meanwhile, core durable goods orders (excluding transportation items) also fell short of consensus estimates and recorded a 0.5% decline during the month of June. 

Despite of the immediate reaction, the US Dollar, as measured by US Dollar index, held steady as markets await for the next big trigger that would determine the greenback's near-term trend, Fed monetary policy decision, later during US trading sessions. 

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Technical levels to watch

On the immediate downside, previous strong resistance near 0.9900 handle, now seems to act as immediate support. Failure to hold this immediate support could drag the pair back towards 200-day SMA support near 0.9855-50 region, below which the pair might continue drifting lower towards 0.9820 support.

Meanwhile on the upside, 0.9945-50 region (May highs) remains immediate hurdle to clear, above which the pair seems all set to surpass parity mark and head towards its next major resistance near 1.0020-30 zone.