The USD/CHF pair remained under some selling pressure for the second consecutive session on Monday and is now moved on the verge of breaking back below the 0.9700 handle.
Spot extended last week's retracement move from 2-1/2 week highs and reversed majority of hawkish Fed decision led gains. Friday's disappointing US housing market data seems to have raised skepticism over prospects for a faster Fed rate-tightening cycle through 2017. Hence, a modest fall in the US Treasury bond yields has kept the US Dollar on Monday.
The pair drifted lower despite of a strong bullish sentiment around global equity markets, which tends to weigh on the Swiss Franc's safe-haven appeal, with the greenback price dynamics acting as an exclusive driver of the pair's movement through the start of a new trading week.
With an empty US economic docket, focus would remain on comments by the Chicago Fed President Charles Evans, which would be looked upon for reinforcement of last week's hawkish Fed decision and eventually for an immediate respite for the USD bulls.
Technical levels to watch
On a sustained break through the 0.9700 handle, leading to a subsequent drop below 0.9685 level, the pair is likely to head back towards 0.9650-45 horizontal zone en-route 0.9620 strong support.
Meanwhile on the upside, 0.9730 levels now seems to act as immediate resistance, which if cleared decisively is likely to lift the pair back towards 0.9765-70 resistance area ahead of the 0.9800 handle.