USD/CHF surrenders early tepid gains back closer to parity mark

   •  Broad-based USD profit-taking fails to help build on an early uptick. 
   •  Swiss KOF Economic Barometer Index rises to 109.1 for Oct.

The USD/CHF pair struggled to build on early up-move and has now surrendered all of its early gains to 0.9990 level. 

After Friday's volatile swing, the pair regained some fresh traction at the start of a new trading week. The up-move, however, failed just ahead of the parity mark amid some profit-taking slide around the US Dollar. 

The Swissy was also supported by today's better-than-expected Switzerland KOF Economic Barometer Index, rising to 109.1 for Oct. from previous month's reading of 105.8. Adding to this, the current prevalent cautious sentiment around equity markets, which tends to underpin the Swiss Franc's safe-haven appeal, further collaborated towards keeping a lid on the pair's initial uptick. 

Later during the NA session, traders would now take cues from the US economic docket, featuring the release of core PCE price index, along with personal income/spending data. The key focus, however, would remain on Wednesday's FOMC decision and the keenly watched NFP data on Friday, which would help investors to determine the pair's next leg of directional move.

Technical levels to watch

Immediate support is pegged near 0.9940 level, below which the pair could correct towards the 0.9900 handle en-route its next support near 0.9850 horizontal zone. 

On the flip side, any up-moves might continue to confront fresh supply near the parity mark, which if cleared might continue to lift the pair further towards 1.0035-40 resistance (Friday's high) ahead of the 1.0100 handle.