USD/CHF weaker below 1.0300 handle, downside seems limited

Having touched its highest level since August 2010 in the previous session, the USD/CHF pair witnessed a corrective slide on Friday and fell farther below 1.0300 handle.

Currently trading around 1.02800 level, the pair drifted lower amid broad based greenback retracement as investors seemed to take some profits off the table following its post-FOMC sharp up-surge of around 250-pips from Wednesday's low near 1.0085 region. However, hawkish Fed statement, signaling more interest rate-hikes in 2017 should continue to lend support to the US Dollar, closer to nearly 14-year highs.

Moreover, Thursday's comments from SNB Chairman Thomas Jordan on possibilities of another rate cut and willingness to intervene in the FX markets, in order to stop any significant appreciation of the Swiss Franc, might also extend support to the pair's near-term bullish trajectory and limit any sharp corrective slide for the major.

Technical levels to watch

Weakness below session low support near 1.0265 region is likely to find support near 1.0220-15 area below which the pair is likely to extend its corrective slide back below 1.0200 handle, towards 1.0175-70 support zone. On the upside, bullish momentum above 1.0300 handle is likely to face resistance around Thursday's multi-year high near 1.0340-45 region, which if conquered should continue boosting the pair initially towards 1.0400 round figure mark and eventually towards its next major resistance near 1.0450 region.