USD/CHF struggles to find direction, trades below 0.9950

• US Dollar Index stays calm near mid-96s.
• European stocks trade mixed on Monday.
• Coming up: Chicago Fed National Activity Index and Dallas Fed Manufacturing Index from the U.S.

After losing nearly 80 pips last week, the USD/CHF pair started the new week in a calm manner and now trades in a very narrow band amid a lack of fresh fundamental drivers. At the moment, the pair was up only 4 pips on the day at 0.9938.

The US Dollar Index, which staged a decisive rebound after posting heavy losses amid the FOMC's dovish tone, is also having a tough time setting its next short-term direction and is moving sideways near 96.50. Later in the session, the Chicago Fed's National Activity Index and the Dallas Fed's Manufacturing Index will be looked upon for fresh impetus.

Meanwhile, following last Friday's sharp drop, the 10-year US T-bond yield is posting modest recovery gains on Monday, suggesting that the market sentiment is slightly more positive especially when compared to the second half of the previous week. European equity indexes are staying close to their opening levels in the session to confirm that the risk-aversion has lost its control over the market action.

Technical levels to consider