USD/CHF recovers daily losses above 0.99, US data eyed

The USD/CHF pair failed to build on yesterday's Fed-led gains on Thursday and erased most of its earning during the European session. As we approach the NA opening, the pair was able to find support ahead of 0.99 at 0.9906 as the greenback started to gather some momentum. As of writing, the pair was trading at 0.9927, still down 0.23% on the day.

After rising to its best level since April 21 at 99.35, the US Dollar Index went into a consolidation phase ahead of the US data. The index eased to 98.90 area but changed direction there and inched higher towards 99. At the moment, the index is calm around that level, losing 0.25% on the day.

Today's economic docket for the U.S.features Weekly Jobless Claims, Factory Orders, Trade Balance and Nonfarm Productivity & Unit Labor Costs. Furthermore, the major stock indexes in the US are signaling towards a positive opening, and the risk sentiment could drive the pair's price action. If the stocks continue to perform well on Thursday, the greenback could extend its correction against the CHF.

Technical outlook

The initial hurdle for the pair aligns at 0.9970 (200-DMA) ahead of 1.0015 (100-DMA) and 1.0100 (Apr. 9 high). To the downside, supports could be seen at 0.9890 (May. 3 low), followed by 0.9810 (Mar. 27 low) and 0.9735 (Nov. 8 low).