USD/CHF inches closer to parity as DXY extends rebound

• US Dollar Index advances to 95.80 area.
• Wall Street looks to open flat on Monday.

The USD/CHF pair, which recorded modest gains on Friday, preserved its bullish momentum on Monday and rose to a 5-day high of 0.9980. As of writing, the pair was a couple of pips below that level, adding 0.25% on a daily basis.

The pair's price action on Monday continues to be driven by markets' greenback valuation. Although the US Dollar Index struggled to take advantage of the strong NFP data on Friday, it closed the day in the positive territory and started the week on a positive note with investors trying to figure out if the Fed will keep its dovish tone despite the strong labour market. At the moment, the US Dollar Index is up 0.16% on the day at 95.77.

Later in the session, factory orders and the ISM-NY's Business Conditions Index will be looked upon for fresh impetus. Meanwhile, major equity indexes in the U.S. is looking to open the day flat with the S&P 500 staying unchanged on the day to suggest a neutral market sentiment, which is likely to leave the pair at the mercy of the DXY's movements in the second half of the day.

Tuesday's non-manufacturing PMI reports from both the IHS Markit and the ISM will be the next significant data releases for the pair.

Technical levels to consider

The pair could face the initial resistance at 1.000 (psychological level/parity) ahead of 1.0050 (Nov. 2, 2018, high) and 1.0110 (Nov. 12, 2018, high). On the downside, supports align at 0.9950 (daily low), 0.9900 (psychological level/50-DMA) and 0.9870 (Jan. 16 low). Meanwhile, the RSI indicator on the daily chart continues to climb toward the 70 mark, suggesting that buyers are likely to remain in control in the near-term.