“¢ Fading safe-haven demand continues to weigh on the Swiss Franc.
“¢ A modest USD uptick provides an additional boost in the last hour.
“¢ Technical buying above 1.0150 paves the way for additional gains.
The offered tone surrounding the Swiss Franc picked up the pace during the early European session on Tuesday, lifting the USD/CHF pair to its highest level since Jan. 2017.
The pair built on its recent bullish bounce from the very important 200-day SMA and continued gaining positive for the second consecutive session on Tuesday, also marking the sixth day of strong gains in the previous seven.
The momentum witnessed over the past four weeks was aided by dovish comments by SNB Chairman Thomas Jordan, saying that there is no reason to change monetary policy and more room to cut if needed.
This coupled with continuous improvement in the global risk sentiment, amid growing optimism over a possible US-China trade deal, further dented the Swiss Franc’s safe-haven status and remained supportive of the up-move.
Today’s strong momentum could also be attributed to a modest pickup in the US Dollar demand, with possibilities of some short-term trading stops being triggered further aggravating the move in the past hour or so.
The pair now seems to have confirmed a near-term bullish breakout and hence, a follow-through up-move, towards reclaiming the 1.0200 handle, remains a distinct possibility amid absent relevant market moving economic releases.
Technical levels to watch
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