USD/CHF stuck in a narrow range below 0.98 handle

The USD/CHF pair lacked any firm direction and held in a narrow range below the 0.9800 handle amid subdued trading action on Monday.

A combination of diverging factors has failed to provide any fresh impetus for the major. Rising US Treasury bond was seen limiting any immediate sharp downslide for the US Dollar, while the prevalent cautious environment on renewed geopolitical tensions was seen supporting the Swiss Franc's safe-haven appeal and has eventually led to range bound price action at the start of a new trading week. 

On Friday, the pair failed to sustained above the 0.9800 handle and faced rejection near the very important 200-day SMA. The price action, however, still seems to point towards a near-term consolidate phase and hence, it would prudent to wait for a follow through selling pressure before confirming that the pair might have topped out in the near-term.

Technical levels to watch

Immediate support is pegged near mid-0.9700s, below which the corrective slide could get extended toward the 0.9700 handle. On the flip side, any up-move beyond the 0.9800 handle might continue to confront some fresh supply near 0.9835 level (200-day SMA), above which a fresh bout of short-covering could lift the pair towards reclaiming the 0.9900 handle.