USD/CHF manages to hold above 100-DMA ahead of FOMC

The USD/CHF pair once again failed to build on its up-move beyond the 1.0100 handle and has dropped back to the lower end of three day old trading range.

As the Dutch elections get underway on Wednesday, growing political uncertainty in the Euro-area is fueling the Swiss Franc's safe-haven demand and dragged the pair back closer to the 100-day SMA important support.

Meanwhile, a mildly weaker tone surrounding the greenback further collaborated to the pair's downslide on Wednesday. With the Fed rate-hike action already priced-in, investors seemed reluctant to carry big long-dollar bets amid skepticism over a follow through action.

Hence, focus would remain on the rate statement, updated economic projection, and the Fed chair Janet Yellen's press conference, where only a further hawkish shift could possibly reignite the US Dollar bullish momentum. 

Heading into the big event risk, the disappointing release of Swiss producer and import prices index for the month of Feb., coming-in at -0.2% as compared to +0.4% expected, seems to have lent some support, at least for the time being.

Later during the NA session, the US economic docket - CPI print, monthly retail sales data and Empire State manufacturing index would be looked upon for some short-term trading impetus.

Technical levels to watch

Bears would be eyeing for a sustained break below 100-day SMA support near 1.0060-55 region, below which the pair is likely to extend the slide towards 1.0010 intermediate support ahead of the 0.9970-65 important support area.

On the flip side, 1.0100 handle has now emerged as immediate strong hurdle, which if conquered is likely to accelerate the up-move towards 1.0135 resistance, en-route multi-month highs resistance near 1.0170 region.