USD/CHF retreats farther below parity mark, at 1-week lows

   •  Mester’s hawkish comments/resurgent US bond yields fail to revive the USD demand.
   •  Negative European equities provide an additional boost to CHF’s safe-haven appeal.

The USD/CHF pair traded with a mild negative bias for the third consecutive session on Monday and fell back closer to Friday's one-week lows. 

The pair extended last week's corrective fall from near one-year tops and retreated farther below the parity mark amid the ongoing US Dollar profit-taking slide that began last week. 

Despite hawkish comments by Cleveland Fed President Loretta Mester and a sudden pickup in the US Treasury bond yields, the USD selling remained unabated and kept exerting downward pressure on the major. 

This coupled with a weaker tone around European equity markets provided an additional boost to the Swiss Franc's safe-haven appeal and further collaborated to the pair's offered tone at the start of a new trading week. 

It would now be interesting to see if the pair is able to attract any fresh buying interest at lower levels or continue with its downfall amid empty US economic docket and reviving safe-haven demand. 

Technical levels to watch

Immediate support is pegged near the 0.9960-55 region, which if broken might drag the pair back towards challenging the 0.9900 handle. On the upside, bulls will be eyeing for a sustained move back beyond the parity mark, above which the pair is likely to aim back towards testing the 1.0050-60 supply zone.