USD/CHF struggling for a firm direction, headed back to session low

The USD/CHF pair struggled to build on Friday's sharp recovery from 100-day SMA support and is now headed back to the lower end of daily trading range.

Currently trading in neutral territory, around 1.0075-70 region, the pair lacked a firm intraday direction amid subdued greenback price-action, with the key US Dollar Index stuck within a narrow band marginally above the 101.00 handle. Meanwhile, news report that the UK government is preparing for a new Scottish independence referendum, and cautious sentiment around European equity markets, was seen supporting the Swiss Franc's safe-haven appeal, albeit has failed to provide any fresh impetus for the major.

Investors' seemed to opt for a wait and watch policy ahead of the US President Donald Trump's first address to Congress on Tuesday, which would be looked upon for clarity over his expansive fiscal policies and eventually determine the pair's near-term trajectory.

In the meantime, Monday's US economic releases - durable goods orders and pending home sales, followed by Dallas Fed President Robert Kaplan's speech might provide some impetus for short-term traders during NA session.

Technical levels to watch

On a sustained move above 1.0080 level, the pair is likely to head towards reclaiming 1.0100 handle, above which up-move could get extended towards 1.0140 level (Feb. 22 high). On the downside, weakness below 1.0060-55 area could drag the pair back towards 100-day SMA support near 1.0030 region, which if broken seems to pave way for a break back below parity mark and eventually drop to its next support near 0.9970-65 region.