USD/CHF clings to gains near 2-month tops, above 0.95 handle

   •  USD remains supported by rising US bond yields.
   •  The risk-off mood now seemed to cap gains.
   •  Focus remains on the key FOMC decision.

The USD/CHF pair faded a knee-jerk spike to near two-month tops and quickly retreated around 15-pips from session tops in the past hour. 

The US Dollar built on last week's strong rebound and remained supportive of the pair's ongoing bullish trend. This coupled with a goodish pickup in the US Treasury bond yields provided an additional boost and lifted the pair to an intraday high level 0.9552. 

However, the prevalent risk-off mood, as depicted by heavy selling pressure across global equity markets, underpinned the Swiss franc's safe-haven appeal and kept a lid on any further up-move.

Moreover, investors also seemed reluctant to place aggressive bets and might now prefer to wait on the sidelines ahead of the latest FOMC decision, which might further contribute towards capping gains, at least for the time being.

In absence of any major market moving economic releases, the USD price dynamics and the broader market risk sentiment might continue to act as key determinants of the pair's momentum on the first day of a new trading week. 

Technical levels to watch

Immediate support is pegged near 0.9520 level, below which the pair is likely to break below the key 0.9500 psychological mark and head towards testing 0.9485 strong horizontal support. On the upside, momentum beyond mid-0.9500s now seems to assist the pair to reclaim the 0.9600 handle and head towards testing 0.9620-25 supply zone.