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  • US Dollar Index fails to extend its recovery on Monday.
  • European stocks record modest losses.
  • Coming up: Chicago Fed National Activity Index & Dallas Fed Manufacturing Index from the U.S.

After starting the week with a small bullish gap, the USD/CHF pair peaked above the 0.96 during the European session but failed to make a decisive move in either direction in the absence of significant fundamental drivers. As of writing, the pair was virtually unchanged on the day at 0.9590.

Meanwhile, following Friday’s recovery, the US Dollar Index couldn’t continue to gather strength on Monday amid the upbeat performance of European currencies such as the euro and the pound sterling. Ahead of the ┬áChicago Fed National Activity Index and the Dallas Fed Manufacturing Index from the U.S., the index is down 0.15% on the day at 94.12.

On the other hand, major European equity indexes are staying in the red on Modan with the Euro Stoxx 50, Germany’s DAX 30 and the UK’s FTSE 100 losing 0.38%, 0.32%, and 0.27% respectively. In case Wall Street starts the day in the negative territory, the CHF could find an opportunity to gather some strength against the buck as a safe-haven.

Later this week, on Wednesday, the SNB is going to publish its Quarterly Bulletin. More importantly, the FOMC is going to announce its interest rate decision and publish its monetary policy statement. According to the CME Group FedWatch, there is a 92% chance of the Fed hiking its policy rate by 25 basis to 2% – 2.25%.

Technical levels to consider

The immediate support for the pair aligns at 0.9585 (daily low) ahead of 0.9535 (Apr. 10 low) and 0.9500 (psychological level). On the upside, resistances are located at 0.9675 (Sep. 20 high), 0.9740 (200-DMA) and 0.9815 (50-DMA).