USD/CHF climbs to session tops, bulls eyeing a sustained move beyond 1.0200 handle

   “¢   A modest USD uptick helped regain positive traction for the second straight session.
   “¢   Bullish traders seemed rather unaffected by sliding US bond yields/weaker equities.

The USD/CHF pair spiked to fresh session tops in the last hour, with bulls making a fresh attempt towards reclaiming the 1.0200 round figure mark.

After an initial dip to 1.0160 area, the pair regained some positive traction and turned higher for the second consecutive session amid a modest pickup in the US Dollar demand. Despite the ongoing decline in the US Treasury bond yields, the greenback showed some resilience at lower levels and was seen as one of the key factors driving the pair higher.

Adding to this, the latest optimism – led by China’s confirmation that vice premier Liu He will be attending trade talks in Washington this week, further undermined demand for the Swiss Franc’s relative safe-haven status and remained supportive of the pair’s intraday up-move, with bulls shrugging off weaker trading sentiment around equity markets.

It, however, remains to be seen if the pair is able to capitalize on the positive momentum or once again meets with some fresh supply at higher levels amid absent relevant market moving economic releases from the US and ahead of the Fed Governor Randal Quarles’ scheduled speech later during the US trading session.

Technical levels to watch

On a sustained move beyond the 1.0200 handle, the pair is likely to aim towards retesting multi-year tops, around the 1.0235 region, before extending its recent bullish momentum towards reclaiming the 1.0300 round figure mark. On the flip side, the 1.0150 region now seems to have emerged as an immediate support and is followed by last week’s swing low, around the 1.0125 area, below which the corrective slide could further get extended towards challenging the 1.0100 round figure mark.