USD/CHF struggles near multi-month lows, around mid-0.9700s

The USD/CHF pair struggled to capitalize on its attempted intraday bounce and has now retreated back to multi-month lows, refreshed earlier this Monday.

The US Dollar added to last week's post-FOMC heavy losses and remained on the defensive at the start of a new trading week, which was seen as one of the key factors keeping a lid on any meaningful recovery for the major. 

It is worth recalling that the Fed, in its latest monetary policy update last Wednesday, showed readiness to cut interest rates later this year to counter a global economic slowdown and combat subdued inflationary pressures.

Having failed to witness acceptance above the parity mark, the pair witnessed a dramatic turnaround and tumbled over 250-pips, back closer to yearly lows and recording its lowest weekly close since September 2018.

The pair held on the defensive at the start of a new trading week, albeit improving risk sentiment - amid the latest US-China trade optimism, undermined the Swiss Franc's safe-haven demand and helped limit deeper losses. 

In absence of any major market moving economic releases, near-term oversold conditions also seemed to be one of the key factors holding investors from placing fresh bearish bets and lending some support, at least for now.

It, however, remains to be seen if the pair is able to attract any buying interest at lower levels or continues with its bearish trajectory as the focus now shifts to the upcoming Trump-Xi meeting later this week. 

Technical levels to watch