USD/CHF confined in a range near mid-0.9800s

   •  Swiss Franc gets a minor boost from SECO’s economic forecasts.
   •  Risk-on mood/US bond yields help limit losses.
   •  US tax bill vote to provide fresh directional impetus.

The USD/CHF pair traded with a mild negative bias for the second consecutive session and remained within striking distance of its immediate support near the 0.9840 region.

Despite the expected passage of a long-awaited US tax cut bill, the US Dollar held weaker near 1-1/2 week lows and kept exerting some downward pressure on the pair. 

Meanwhile, the Swiss Franc got an additional boost from today's upbeat quarterly economic growth forecasts by the Swiss government’s State Secretariat for Economic Affairs (SECO). According to the latest forecasts, the domestic economy is now expected to grow by 1.0% in 2017 (0.9% forecasted previously) and at 2.3% in 2018 (previous 2.0%). 

Meanwhile, the prevalent risk-on environment, coupled with a modest uptick in the US Treasury bond yields, helped limit deeper losses, at least for the time being. 

Investors' focus on Tuesday would remain on progress over the US tax reform, which would drive the greenback in the near-term and eventually provide some directional impetus. Ahead of the key event, the US housing market data would also be looked upon for short-term trading opportunities during the early NA session.

Technical levels to watch

Sustained weakness below 0.9840 immediate support is likely to accelerate the fall towards the 0.9800 handle en-route the very important 200-day SMA support near the 0.9785 region.

On the upside, any up-move might now confront fresh supply near the 0.9885 level, which is closely followed by the 0.9900 handle. A convincing break through the mentioned hurdles might now pave the way for an extension of the pair's upward trajectory.