USD/CHF holds with modest losses, below 0.95 handle

   •  A subdued USD demand fails to provide any fresh bullish impetus.
   •  Risk-on mood weighing on CHF’s safe-haven demand and limits downside.

The USD/CHF pair extended its post-NFP consolidative price action and is currently placed at the lower end of its narrow trading range, below the key 0.95 psychological mark. 

A combination of diverging forces failed to provide any fresh impetus and led to a subdued/range-bound price action at the start of a new trading week. A subdued US Dollar demand weighed down by weaker US Treasury bond yields, capped the pair below Friday's over month highs.

However, a fresh wave of risk-on trade, as depicted by a strong rally across global equity markets was seen denting the Swiss Franc's safe-haven appeal and was seen limiting further downside, at least for the time being. 

Despite a modest pull-back, the pair's recent price action might still be categorized as consolidation phase amid absent major market-moving economic data. This week's important US macro releases, including the latest consumer inflation figures and monthly retail sales data, would now be looked upon for some fresh directional impetus. 

Technical levels to watch

Any subsequent retracement is likely to find support near the 0.9460-50 region, below which the pair could correct further towards retesting sub-0.9400 level. On the upside, 0.9515 level might continue to act as an immediate resistance, which if cleared could accelerate the up-move towards 0.9575-80 hurdle en-route the 0.9600 handle.