USD/CHF turns lower, upside remains capped at 1.0200 level

Having once again failing to decisively move above 1.0200 handle, the USD/CHF pair ran through fresh offers on Monday and has drifted into negative territory.

Currently trading around 1.0165-60 region, testing session lows, the pair witnessed a profit taking slide on Monday after struggling to build on last week's strong up-move from 3-week low to the highest level since early Feb. Ahead of the much-awaited FOMC meeting on Wednesday, investors seem to position themselves cautiously and prefer to take some profits off the table.

With a 25 bps interest-rate hike fully priced-in, investors will now look for clues over the possibilities and timing of next Fed rate-hike action in 2017 from the updated interest-rate and economic projections (dot-plots), accompanying the monetary policy statement. 

Technical levels to watch

Weakness below 1.0150 level is likely to accelerate the slide back towards 1.0100 round figure mark with some intermediate support near 1.0130 level. Alternatively, on a sustained move above 1.0175 immediate resistance the pair is likely to make a fresh attempt towards conquering 1.0200 handle above which the pair seems to aim towards yearly highs resistance near 1.0255-60 region.