USD/CHF consolidating recent gains to 2-1/2 week highs

The USD/CHF pair was seen consolidating recent strong gains to over 2-week highs and remained confined within 20-pips narrow trading range above the parity mark.

Against the backdrop of Friday's neutral remarks by the New York Fed President William Dudley, a softer tone surrounding the key US Dollar Index has failed to provide any fresh bullish impetus and assist the pair to build on last week's strong recovery move from 4-month lows touched on Monday. 

Meanwhile, the positive trading sentiment around global equity markets weighed on the Swiss Franc's safe-haven appeal and has eventually led to the pair's subdued, range-bound price action on Monday. 

On the economic data front, even the release of better-than-expected Swiss manufacturing PMI and retail sales data also did little to move the pair out of the current narrow trading range. 

Later during the day, the release of US ISM manufacturing PMI would now grab the spotlight and would be looked upon for some short-term trading opportunities. Also in focus would be speeches by various FOMC members - New York Fed President William Dudley, Philadelphia Fed President Patrick Harker and Richmond Fed President Jeffrey Lacker.

Technical levels to watch

A follow through buying interest above 1.0030 level (Friday's high) has the potential to lift the pair beyond 1.0050-55 intermediate resistance towards testing 100-day SMA strong hurdle near 1.0075 region. 

On the downside, retracement back below the parity mark might trigger a corrective slide towards 0.9965 horizontal support, which if broken would turn the pair vulnerable to head back towards the very important 200-day SMA support near 0.9925 region.