USD/CHF climbs toward 1.0100 as DXY erases early losses

US Dollar Index turns flat on the day near 97.40.
European stock markets post gains on Monday.
Coming up: Retail sales from the U.S.

After spending the Asian session and the European morning in a very tight range near 1.0080, the USD/CHF pair gained traction in the last hour and was last seen trading at 1.0092, adding 0.15% on a daily basis.

A new USD-buying wave in the last hour seems to be fueling the pair's recent upsurge. Despite a sharp drop on Friday following the disappointing NFP data, the US Dollar Index posted its highest weekly-close of the year and started the week under modest bearish pressure. However, with major European currencies such as the euro and the GBP struggling to find demand on Monday, the US Dollar Index found support at 97.27 and was last seen virtually unchanged on the day at 97.40.

Later in the session, retail sales from the U.S. will be watched closely by the market participants. Analysts expect sales to decline by 0.1% on a monthly basis in January and a better-than-expected reading could allow the pair to push higher in the second half of the day.

Meanwhile, the fact that major European equity indices are staying in the positive territory on Monday points to a positive market sentiment, which makes it difficult for the CHF to recover its losses.

Technical levels to consider

USD/CHF

Trends:
    Daily SMA20: 1.0032
    Daily SMA50: 0.9959
    Daily SMA100: 0.9966
    Daily SMA200: 0.9915
Levels:
    Previous Daily High: 1.0124
    Previous Daily Low: 1.0069
    Previous Weekly High: 1.0125
    Previous Weekly Low: 0.9977
    Previous Monthly High: 1.01
    Previous Monthly Low: 0.9921
    Daily Fibonacci 38.2%: 1.009
    Daily Fibonacci 61.8%: 1.0103
    Daily Pivot Point S1: 1.0059
    Daily Pivot Point S2: 1.0036
    Daily Pivot Point S3: 1.0004
    Daily Pivot Point R1: 1.0114
    Daily Pivot Point R2: 1.0146
    Daily Pivot Point R3: 1.0169

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