USD/CHF struggling to remain on-balance for Monday after a test of 0.8800

• The USD/CHF briefly tested below 0.8800 on Monday before recovering.
• Despite a steady drift lower, the US Dollar continues to find support against the Swiss Franc.
• Plenty of back-and-forth for the USD/CHF between Swiss and US economic data releases.

The USD/CHF saw a dip back below the 0.8800 price level in Monday's thin trading, and the US Dollar (USD) made a quick recovery against the Swiss Franc (CHF) as investors push towards the middle.

Monday is seeing thin, steady markets as investors gear up for a hectic latter half of the week on the economic calendar, with a decent spread across the board.

Wednesday will kick off this week's meaningful data releases with the Swiss ZEW Survey of Business Expectations at 09:00 GMT. The survey last showed a reading of -37.8 in October as businesses continue to remain pessimistic over the Swiss economy.

According to data compiled by Credit Suisse, Swiss citizens' primary cost concerns center on healthcare, with health insurance, health issues, and premiums taking the top spot in responses, cited by 40% of all polled citizens compared to 24% the year before. 

The negative outlook from Swiss citizens is weighing on business expectations, and the Business Expectations Survey's results were the worst showing from the report in almost six months.

On the US side, Gross Domestic Product (GDP) growth figures are due later Wednesday, and markets are broadly expecting an uptick in the annualized quarterly figure from 4.9% to 5.0%.

With markets broadly focused on Fedspeak, Wednesday's Core Personal Consumption Expenditure (PCE) inflation reading for the US will draw some heads as investors try to suss out how far along the path to rate cuts the US truly is.

USD/CHF Technical Analysis

The USD/CHF has been sticking close to median prices at the 50-hour Simple Moving Average (SMA), though overall momentum in the pair has remained down ever since the pair lost grip of the 0.9100 handle back in early October.

Topside momentum remains capped by the 200-hour SMA near 0.8850.

On the daily charts, the USD/CHF is seeing a further extension of the recent bearish momentum, dropping away from the 200-day SMA just south of the 0.900 major handle, and the 50-day SMA is set for a downside acceleration and the 50- and 200-day SMAs are looking at a bearish crossover in short order.

USD/CHF Daily Chart

USD/CHF Levels