USD/CHF clings to daily gains above 0.9950 after US GDP data

• Real GDP in the U.S. in the Q4 expands by 1.9%.
• US Dollar Index stays in green above 97 after data.
• Wall Street looks to open the day flat.

Following Monday's drop, the USD/CHF pair closed the last two days in the positive territory and extended its rebound on Wednesday. As of writing, the pair was trading at 0.9960, adding 0.15% on a daily basis.

Earlier today, the improved market sentiment as reflected by recovering US T-bond yields helped the USD/CHF build on yesterday's gains by making it difficult for the safe-haven CHF to find demand. Meanwhile, the greenback gathered strength to fuel the pair's daily advance. The US Dollar Index, which touched a 16-day high of 97.17 in the last hour, is now adding 0.17% on the day at 97.11.

According to the U.S. Bureau of Economic Analysis' third estimate, the real GDP in the fourth quarter expanded by 1.9% on a quarterly basis to come in slightly above the experts' forecast of 1.8%. On a yearly basis, however, the growth rate edged down to 2.2% from 2.6%. Further details of the publication revealed that the PCE prices stayed unchanged at 1.5% in the same period to match the market expectation. 

Later in the session, pending home sales from the U.S. and speeches by FOMC members Clarida, Williams, and Bullard, will be looked upon for fresh impetus. 

Technical levels to consider

The pair could face the next resistance at 1.0000/1.0005 (psychological level/50-DMA) ahead of 1.0050 (Mar. 15 high) and 1.0083 (Mar. 13 high). On the downside, supports are located at 0.9940 (daily low), 0.9895/0.9900 (Mar. 20 low/psychological level) and 0.9850 (Jan. 3 low).