USD/CHF extends range-bound price-action near 1.0100 handle

The USD/CHF pair erased all of its early gains to 1.0180 region and has now drifted into negative territory, reversing nearly 100-pips from session peak.

Currently hovering around 1.0100 region, the pair struggled for a firm near-term direction and has been oscillating within a broader 100-pips trading range since past two week. Moreover, the overall US Dollar Index also seems to have entered a consolidative phase, and has failed to provide any impetus for the pair's near-term trajectory, as markets now look forward to the upcoming FOMC meeting on December 13-14.

Today's release of US ISM non-manufacturing PMI might provide some impetus for short-term traders, but the broader trend would remain dependent on market expectations of further Fed rate-hike action, beyond December meeting. Hence, market participants will particularly be focusing on the dot plots (updated FOMC economic and interest-rate projections)  in order to seek further clarity over the pace and timing of Fed's monetary policy tightening cycle going into 2017, which would eventually determine the pair's next leg of directional move.

Technical levels to watch

Immediate downside support is pegged near 1.0080-70 region, which if broken decisively is likely to accelerate the slide further towards parity mark with 1.0055-50 region acting as intermediate support. On the upside, momentum back above 1.0120 could get extended towards 1.0160 horizontal resistance ahead of the very important resistance near 1.0180-85 region.