USD/CHF attempting to recover back above 0.9900 handle

The USD/CHF maintained its bid tone and has now reversed part of Friday's sharp losses led by news of FBI probe on Clinton's email.

Currently trading around 0.9895 region, attempting to reclaim 0.9900 handle, the pair shrugged off disappointing Chicago PMI that showed business activity in Chicago area slowed more than expected in October. The PMI reading came-in at 50.6, well short of 54.0 expected and 54.2 recorded in September. 

Earlier during NA session, releases of Fed's preferred inflation gauge - Core PCE Price Index, and personal income / spending data provided little impetus and the pair held on to its daily gains amid increasing prospects of an eventual Fed rate-hike action at December meeting. 

Focus now shifts to the Fed monetary policy decision on Wednesday, which would be looked upon to gain further clarity over timing of central bank's next rate-hike decision. Later on Friday, the keenly watched US monthly jobs report (NFP) would further drive investor expectations and would eventually help investors to determine the pair's near-term direction.

Technical levels to watch

A sustained move above 0.9900 handle might trigger a fresh bout of short-covering and assist the pair further towards 0.9930-35 resistance area. A follow through buying interest might now lift the pair beyond 0.9955 resistance area, towards making a fresh attempt towards parity mark.

On the downside, 0.9870 level now becomes immediate support, which if broken could accelerate the slide immediately towards 0.9845-40 support area before the pair eventually drops back to 0.9800 handle.