USD/CHF erases gains, returns to the lower end of recent trading range

The USD/CHF pair is seen repeating the recent price-action, with the pair erasing majority of its gains and head back to the lower end of its latest 4-day  trading range. 

Of late, the Swiss Franc has been unaffected by broad US Dollar strength and has benefited from ‘Brexit’ led global risk aversion flows. Against the greenback, the Swiss currency seems to have stuck in a narrow 40-50 pips trading range between 0.9620-0.9670 area. 

Despite of the global risk-on, the pair continues to show resilience in breaking through the recent trading range as investors now await for fresh impetus from today's FOMC decision ahead of SNB monetary policy announcement on Thursday. Both the Fed and the SNB are expected to keep their monetary policy stance unchanged, but traders seems to wait for the passage of key event risks before taking near-term directional bets.

Technical levels to watch

On the upside, the pair needs to sustain momentum above 0.9655-60 resistance, beyond which it could extend the bullish move beyond 0.9700 handle, towards 20-day SMA resistance near 0.9720-25 region. On the downside, weakness below 0.9600 level now seems to open room for further near-term depreciating move, initially towards recent daily closing lows support near 0.9550-45 zone and eventually below 0.9500 handle towards retesting May lows support near 0.9450-45 area.