USD/CHF extends Monday’s reversal move, now eyeing 1.0100 mark

Having posted a session high near 1.0150 region, the USD/CHF pair reversed early tepid gains and has now drifted into negative territory for the second consecutive session.

Currently trading at three-day lows, around 1.0120 region, the pair extended Monday's downslide from 1.0200 strong hurdle as investors seemed reluctant to initiate and carry bullish USD bets ahead of the much awaited two-day FOMC meeting, starting Tuesday. The Fed is scheduled to announce its monetary policy decision on Wednesday and is widely expected to raise interest rates for the first time in a year. 

With Fed rate-hike fully priced-in, investors would be keen to know the central bank's monetary policy outlook for 2017 and hence, will be closely scrutinizing the updated economic outlook and future path of interest-rates (dot-plots), which would eventually help in determining the pair's next leg of directional move.

In the meantime, the pair remains at the mercy of US Dollar price-dynamics and the broader market risk-sentiment, which would derive the safe-haven demand of the Swiss Franc.

Technical levels to watch

Immediate downside support is pegged near 1.0100 psychological mark, which if broken is likely to accelerate the slide towards 1.0060-55 horizontal support before the pair eventually drops to retest parity mark. On the upside, 1.0160-65 region now seems to have emerged as immediate resistance above which a the pair seems more likely to make a fresh attempt to conquer 1.0200 handle.