USD/CHF stick to recovery gains beyond 1.0100 handle

The USD/CHF pair staged a goodish recovery on Monday and has now reversed its previous session losses to one-month low.

Currently trading around 1.0120 region, 15-pips off session peak level of 1.0136, a broad based US Dollar recovery from three week lows has been the key factor driving the pair's recovery from the lowest level since Dec. 8, touched on Friday.

Meanwhile, the prevalent weak sentiment around European equity market is underpinning the Swiss Franc's safe-haven appeal and restricting further upside for the major. Moreover, traders might refrain from initiating fresh long positions amid prevailing uncertainty over the incoming Trump administration's fiscal policies and might collaborate towards limiting the pair's recovery move. 

Investors this week will remain focused on the US President-elect Donald Trump's inauguration speech on Friday, which would help them determine the pair's next leg of directional move. 

Technical levels to watch

On a sustained move above 1.0135-40 immediate resistance, the pair seems to head towards 1.0170 horizontal resistance ahead of 1.0200 round figure mark. On the downside, 1.0100-1.0090 area now becomes immediate support to defend, which if broken is likely to accelerate the slide back towards one-month lows support near 1.0045 region, touched last week.