USD/CHF consolidates in a range, holds above 0.9700 mark

• The prevalent USD selling bias exerted some downward pressure on the USD/CHF.
• The downside remains cushioned amid a positive mood around the equity markets.
• A convincing break through 100-200-DMA needed to confirm the near-term trajectory.

The USD/CHF pair lacked any firm directional bias and seesawed between tepid gains/minor losses through the early European session.

A combination of diverging forces failed to provide any meaningful impetus to the major and led to a subdued/range-bound trading action through the early European session on the first day of a new trading week.

The latest optimism over hopes for the reopening of the US economy and drug trials for treatments of COVID-19 further dented the US dollar's status as the global reserve currency and exerted some pressure on the pair.

However, the downside remained cushioned ahead of 100-day SMA support, around the 0.9700 round-figure mark, amid a positive mood around the global equity markets, which tends to undermine the Swiss franc's safe-haven demand.

Hence, it will be prudent to wait for some strong follow-through selling before traders start positioning for an extension of Friday's rejection slide from the very important 200-day SMA barrier, or one-month tops.

In the absence of any major market-moving economic releases from the US, the broader market risk sentiment and the USD price dynamics might continue to play a key role in influencing the pair's momentum on Monday.

Later during this week, the advanced estimate of the US GDP figures for the first quarter of 2020 and the latest FOMC monetary policy update might assist traders to determine the pair's next leg of a directional move.

Technical levels to watch