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USD/CHF off 5-year tops, but holds above 1.0300

FXStreet (Mumbai) - The US dollar halts its five-day winning streak and wavers just ahead of 1.03 handle versus its Swiss counterpart in early Europe.

USD/CHF retreats from five-year highs

Currently, the USD/CHF pair trades 0.18% higher at 1.0312, bouncing-off a brief dip below 1.03 barrier earlier on the day. The major failed to sustain at higher levels and retreated in Asia, as markets resorted to profit-taking after USD/CHF rose to the highest levels in more than five-years at 1.0335 last Friday.

However, the pair remains supported as the greenback continues to trade near eight-month highs against its major competitors as we near an inevitable Fed rate hike in next few weeks.

Moreover, the Swiss franc remains pressured on growing expectations that the Swiss National Bank (SNB) may very well cut rates soon, lock-stepping in with the ECB. The ECB is widely expected to slash deposit rates further its Dec 3 meeting.

Meanwhile, the major may continue to track the broader market sentiment ahead of the Swiss KOF Economic barometer and the US economic data due later in the day.

USD/CHF Technical Levels

To the upside, the next resistance is located 1.0335 (Nov 27 High) levels and above which it could extend gains to 1.0400 (Aug 2010 Levels). To the downside, immediate support might be located at 1.0264 (1h 50-SMA) and below that 1.0212 (Nov 27 low).

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