The USD/CHF pair surrendered early tepid recovery gains to 0.9475 level and gravitated back closer to 14-month lows touched on Friday.
A fresh wave of global risk aversion trade, as depicted by the prevalent bearish trading sentiment around European equity markets was seen benefitting the Swiss Franc's safe-haven appeal and weighing on the major.
Meanwhile, the key US Dollar Index consolidated recent losses to 13-month lows, on growing doubts over the US President Donald Trump's ability to push through his promised pro-growth economic agenda, and did little to provide any immediate respite of the major.
From a technical perspective, today's price-action would still be categorized a consolidative phase amid near-term oversold conditions. Later during the NA session, the US PMI prints and existing home sales data would now be looked upon for some trading impetus.
However, the key focus would remain on Wednesday's FOMC monetary policy decision, which would a key determinant of the pair's next leg of directional move.
Technical levels to watch
A follow through selling pressure below 0.9445-40 region has the potential to continue dragging the pair further towards the 0.9400 handle. On the flip side, sustained recovery beyond 0.9475 level (session tops) now seems to lift the pair beyond the key 0.95 psychological mark towards its next hurdle near mid-0.9500s.
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