USD/CHF rebounds from 1-week lows, remains below 1.0050

• Swiss franc rises on Monday versus greenback but moves off highs. 
• USD/CHF outlook favors the downside while below 1.0050. 

The Swiss Franc rose against the US dollar on Monday, on a quiet session amid a Holiday in the US. The move lower took place on the back of a slide of the greenback across the board. The DXY dropped modestly to 96.78 and pulled back further from the monthly high it hit on Friday at 97.37. 

The USD/CHF bottomed at 1.0023, the lowest in a week and then trimmed losses on a quiet US session. As of writing, trades at 1.0040, down for the day and at the same level it had a week ago. 

Despite moving off lows, the pair is consolidating below the 1.0040 area, a relevant short-term support. The negative tone could persist ahead of the Asian session, but if it rises above 1.0055/60 the greenback should recover strength. 
 
Last week USD/CHF approached 1.0100 and reversed. So a clear break above is needed to open the doors to more gains for the greenback. On the opposite direction, under 1.0020 the next strong support is seen around 0.9940,  (Jan 30 high / 20-day moving average). 

Markets are expected to return to normality on Tuesday. Regarding data, the critical event ahead is the release of the FOMC minutes. Also, traders follow closely developments related to US-China trade talks and the possible tariffs to European cars going to the US. 

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