USD/CHF recovery stalls at 1.0100 handle, back closer to 100-DMA

The USD/CHF pair failed to build on early recovery gains to the 1.0100 handle and has now drifted to the lower end of daily trading range around 1.0070 region.

With markets already pricing-in Fed rate-hike move at the end of a two-day meeting on Wednesday, skepticism over a follow through action has failed to assist the US Dollar to regain traction. Hence, investors would keenly scrutinize the updated 'dot-plots', which would act as the next catalyst for the greenback's near-term direction.

Investors this week will also confront the SNB monetary policy decision, where the central bank is widely expected to stick to the ultra-loose monetary policy, deployed since last two years. 

Meanwhile, growing political uncertainty in the Euro-area, where possibilities of anti-Euro parties gaining traction, has been fueling demand for the Swiss Franc's safe-haven appeal and holding the pair closer to the 100-day SMA important support.

Technical levels to watch

Sustained weakness below 100-day SMA support near 1.0060-55 region now seems to pave way for continuation of the pair's corrective slide towards 1.0010 intermediate support ahead of the next important support near 0.9970-65 area.

On the upside, a follow through momentum above the 1.0100 handle is likely to lift the pair towards 1.0135 resistance before eventually aiming to multi-month highs resistance near 1.0170 region.