USD/CHF fails ahead of 0.95 mark, trims tepid recovery gains

The USD/CHF pair stalled its tepid recovery move and trimmed some of its daily gains closer to the key 0.9500 psychological mark.

The pair's sharp retracement over the past couple of hours lacked any fundamental trigger and could be solely attributed to some renewed greenback selling bias. In fact, the key US Dollar Index tumbled to fresh 13-month lows near mid-93.00s during early NA session and has been the key factor weighing on the major.

Traders even shrugged off a sharp recovery in the US Treasury bond yields, with the prevalent highly bearish sentiment surrounding the buck restricting any meaningful recovery for the major. The ongoing political drama in the US and growing doubts over the US President Donald Trump's ability to push through pro-growth economic reforms, and fading expectations of any additional Fed rate hike action in 2017 has been weighing on the greenback over the past couple of weeks. 

The selling pressure, however, seems to have abated and the pair managed to hold session lows support near mid-0.9400s as traders now look forward to the CB's Consumer Confidence Index and the Senate healthcare vote ahead of this week's important event risk - FOMC decision on Wednesday. 

Technical levels to watch

A sustained recovery beyond the 0.95 handle could trigger a short-covering rally towards 0.9545-50 hurdle before the pair eventually darts towards reclaiming the 0.9600 round figure mark. On the downside, weakness below mid-0.9400s would turn the pair vulnerable to head towards testing the 0.9400 handle.