USD/CHF struggling to recover back above 0.9900 handle

The USD/CHF pair was seen struggling to build on Monday's tepid recovery gains and remained confined below 0.9900 handle ahead of Swiss data.

Currently trading around 0.9890-85 band, the pair has failed to gain any traction and has been confined within a narrow range as traders look forward to Swiss monthly retail sales and manufacturing PMI data. 

Later during NA session, the release of ISM manufacturing PMI might provide some short-term trading opportunities. Investors, however, will remain focused on Wednesday's FOMC decision and Friday's key monthly jobs report in order to gauge possibilities and timing of next Fed rate-hike action and would eventually determine the pair's near-term trajectory.

Technical levels to watch

On a sustained move above 0.9900 handle, the pair is likely to immediately dart towards 0.9930-35 resistance area above which the momentum could further get extended towards 0.9955 resistance area. On the downside, weakness below 0.9870 level seems to drag the pair towards 0.9845-40 support area before the pair eventually drops back to 0.9800 handle.