USD/CHF inches higher to session highs

Like most of the majors, the USD/CHF pair remains lifeless on Monday as the trading volume thins out due to the Memorial Day holiday in the U.S. However, a mild upsurge witnessed in the US Dollar Index in the last hour is helping the pair rise towards its session high. As of writing the pair was trading at 0.9758, up 0.11% on the day.

ECB President Mario Draghi's speech, the only event that was relevant for the markets, didn't provide any surprises as Draghi reiterated that although the recovery is becoming sustainable, an extraordinary amount of monetary policy support was still needed. Later in the session, he will speak again at a hearing before the Committee on Economic and Monetary Affairs (ECON) of the European Parliament in Brussels. That event won't be offering anything interesting for the participants.

• Draghi Speech: Economic upswing is becoming solid

It will be difficult for the pair to make a decisive move in the remainder of the day as the calmness is likely to persist. Tomorrow's economic calendar will feature KOF Leading Indicator from Switzerland, which is expected to improve to 106.2 in May from 106 in April. Later in the NA session, consumer spending and income figures could bring some volatility as these data usually impact the equity indexes, changing the overall market sentiment.

Technical outlook

On the daily graph, the pair is forming a descending triangle, suggesting that the markets are losing interest in the pair, awaiting a major catalyst that could trigger a breakout. 0.9775 (May 24 high) could be seen as the initial hurdle for the pair ahead of 0.9850 (May 17 high) and 0.9900 (psychological level). On the downside, supports could be seen at 0.9700 (psychological level/May 26 low) ahead of 0.9640 (Sept. 29 low) and 0.9600 (psychological level).

• US NFP and upcoming polls of UK in focus this week - Rabobank