USD/CHF holds comfortably above 0.96 handle, US data eyed

The USD/CHF pair trimmed some of its early gains and retreated around 20-pips from session tops, albeit has managed to hold with modest gains for the second consecutive session 

The pair seemed struggling at higher levels amid a modest pickup in safe-haven demand. European equity markets surrendered early strong gains and have now drifted into negative territory, which eventually extended some support to the Swiss Franc's safe-haven appeal. 

Adding to this, a subdued US Dollar price action, led by weaker US Treasury bond yields, also did little to help the pair to decisively break through its immediate supply zone near mid-0.9600s.

Looking at the pair's movement over the past one week, bulls seemed non-committed at higher level amid lack of fresh catalysts and ahead of the next big event risk - a two-day FOMC meeting.

Today's US economic docket, featuring the release of housing market data, current account numbers and export/import price index, would be looked upon for short-term trading impetus. The key focus, however, would remain on the much awaited Fed decision, due to be announced during NY trading session on Wednesday. 

   •  US: Focus on Sep FOMC meeting - Westpac

Technical levels to watch

Momentum beyond mid-0.9600s is likely to confront fresh supply at 100-day SMA near the 0.9680 region. A convincing break through the mentioned hurdle is likely to help the pair towards conquering the 0.9700 handle and lift its further towards next major hurdle near the 0.9725-30 region.

On the flip side, the 0.9600 handle now seems to have emerged as immediate support, which if broken is likely to accelerate the fall towards 0.9555-50 strong horizontal support ahead of 0.9525 level.