FXStreet (Mumbai) - The USD/CHF pair ended seven consecutive sessions of gains and edged lower in the early European morning, as the US dollar retreated versus its major competitors after surging to fresh two-month highs on Friday. USD/CHF capped below 0.9800 Currently, the USD/CHF pair loses -0.13% to trade at 0.9771, unable to extend beyond daily R1 located near 0.9795. The USD/CHF pair extends its corrective mode into the European session as the traders resorted to locking-in gains on their longs after the recent upsurge ahead of the key Fed event due later this week. Moreover, the traditional safe-haven in the Swiss franc remains bid on the back of fading risk-sentiment fuelled by the Chinese rate cut news as markets predict a cautious start for the European indices. DAX futures are down -0.24% at 10,796 while FTSE futures are losing -0.27% ahead of Europe open. Meanwhile, the major will track the broader market sentiment ahead of the US new home sales data due later in the New York session. USD/CHF Technical Levels To the upside, the next resistance is located 0.9793/94 (Today’s High + daily R1) levels and above which it could extend gains to 0.9845 (Sept 25 High). To the downside, immediate support might be located at 0.9731/35 (hourly 50-SMA + 5-DMA) and below that at 0.9686 (50-DMA). For more information, read our latest forex news.