USD/CHF on offers for third straight session, weaker below 0.96 handle

Having posted a session high level of 0.9620, the USD/CHF pair ran through some fresh offers and drifted into negative territory for the third consecutive session.

The pair extended last week's rejection slide from 100-day SMA hurdle near the 0.9700 handle and has now retreated further below the 0.9600 handle, closer to Friday's dismal US monthly retail sales data-led swing lows. 

A mildly softer tone around the US Dollar failed to assist the pair to build on early up-move beyond the 0.9600 handle. This coupled with a modest retracement in the European equity markets further extended support to the Swiss Franc's safe-haven appeal and collaborated to the pair's slide since early European session. 

The downside, however, has been limited, at least for the time being, as investors turned their focus to the much awaited FOMC policy meeting this week. 

The Fed is widely expected to leave interest rates unchanged but clues over the central banks plans to begin unwinding its massive balance sheet and additional rate hike in 2017 would help investors determine the next leg of directional move for the major.

   •  FOMC meeting will be historic - BBH

In the meantime, broader market risk sentiment and the USD price dynamics would act as key determinants of the pair's movement ahead of the key event risk. 

Technical levels to watch

Immediate support is pegged near 0.9560 area, below which the pair is likely to accelerate the fall towards the key 0.95 psychological mark en-route an important support near the 0.9445-40 region.

On the flip side, sustained momentum beyond the 0.9600 handle, leading to a subsequent strength above 0.9620 level, could lift the pair back towards downward sloping 100-day SMA hurdle near the 0.9680-85 region.