USD/CHF corrects to 0.9900 on profit-taking

After tapping multi-week high level of 0.9938 on Tuesday, the USD/CHF pair is witnessing some profit-taking move on Wednesday as USD bulls seems to take breather after three weeks of relentless rally from multi-month lower level.

At the time of writing, the pair traded at the low point of the day, barely holding its neck above 0.9900 round figure mark. A minor uptick in Switzerland's UBS consumption indicator and a sharp rise in ZEW Economic Expectations attracted some bids for the Swiss Franc.

Moreover, daily RSI reading (near 70) warranted some consolidation or a corrective slide. Wednesday's fall is unlikely to disturb the pair's short-term well-established recovery trend.

Technical levels to watch

Below 0.9900 level, the corrective move could get extended towards 0.9870 horizontal support. A drop below 0.9870 is likely to get bought into near 0.9835-30 zone, marking 100-day and 200-day SMAs confluence resistance break-point.

Meanwhile on the upside, 0.9925-30 seems to pose some immediate barrier, which if cleared now seems to assist the pair to surpass 0.9950-55 intermediate resistance and head towards reclaiming parity mark.