USD/CHF stuck in tight range below 0.98 amid a lack of catalysts

The USD/CHF pair, which gained nearly 100 pips in the previous week, started the day in a calm manner on Monday and has been trading in a tight 25-pip range. As of writing, the pair was at 0.9790, losing 0.08% on the day.

The only noteworthy data of the day came from Germany and the euro area. Industrial production grew by 2.6% on a monthly basis in August after recording a 0.1% contraction in July while the Sentix Investor Confidence from the euro area improved to 29.7 from 28.2 in October and surpassed the market expectation of 28.5. Nevertheless, the market reaction to these data stayed limited and the US Dollar Index continues to tread water a little above mid-93s.

The remainder of the day won't be offering any data that could impact the price action. Moreover, the fact that the U.S. and Canada markets will be closed due to official holidays is likely to force the pair to stay in its recent range. 

Although the economic calendar will be featuring some low-tier data on Tuesday, majors could struggle to find the next short-term direction before the FOMC releases its September meeting minutes on Wednesday, 

Technical outlook

The pair could encounter the first technical hurdle at 0.9800 (psychological level/May 29 high) ahead of 0.9850 (May 17 high) and 0.9935 (Apr. 23 high). On the downside, supports align at 0.9680 (Oct. 2 low), 0.9645 (100-DMA/50-DMA) and 0.9565 (Sep. 15 low). Despite today's subdued trading action, the RSI indicator on the daily RSI remains above the 50 mark, suggesting that the pair is inclined to rise further in the short-term.