USD/CHF climbs further beyond 0.9900 handle, near 3-week tops

   “¢   A modest USD uptick helps build on the recent sharp rebound from over 3-month lows.
   “¢   Technical buying above 200-DMA provides an additional boost and remain supportive.
   “¢   The up-move seemed rather unaffected by the weaker risk sentiment/US bond yields.

The USD/CHF pair continued gaining positive traction for the third consecutive session and climbed to near three-week tops in the last hour.

The pair built on last week’s sharp rebound from over three-month lows, with a modest US Dollar uptick extending some support and assisting bulls to extend the trajectory further beyond the 0.9900 handle.  

The up-move seemed rather unaffected by softer risk sentiment, further reinforced by a modest retracement in the US Treasury bond yields and which tends to boost the Swiss Franc’s safe-haven demand.

Meanwhile, possibilities of some technical buying/short-covering, especially after the overnight breakthrough the very important 200-day SMA, could also be one of the factors fueling the ongoing positive momentum.

It would now be interesting to see if bulls are able to maintain their dominant position of the up-move is seen as a selling opportunity amid dovish Fed expectations and deteriorating global risk-appetite.  

Moving ahead, today’s second-tier US economic data – initial weekly jobless claims and Philly Fed manufacturing index, will now be looked upon in order to capture some short-term trading opportunities.

Technical levels to watch

Any subsequent up-move is likely to confront some fresh supply near the 0.9950 region, above which bulls are likely to aim towards reclaiming the parity mark. On the flip side, the 0.9900-0.9890 region (200-DMA) now becomes immediate support to defend, which if broken might accelerate the fall back towards the 0.9845 horizontal zone.