USD/CHF clings to gains near multi-year tops, comfortably above 1.0200 mark

The USD/CHF pair continued scaling higher through the early North-American session and is currently placed comfortably above the 1.0200 handle, the highest since Jan. 017.

The pair caught some aggressive bids on Tuesday and built on this month’s strong rally of over 2.0%. The strong intraday positive move comes amid the lack of safe-haven demand and resurgent US Dollar demand.

The incoming positive economic data from the US and China helped ease concerns over slowing global economic growth and pressurized traditional safe-haven currencies, including the Swiss Franc.  

This coupled with a goodish pickup in the USD demand, further supported by an unexpected jump in new home sales, provided an additional boost and remained supportive of the ongoing strong positive move.

Adding to this, possibilities of some aggressive technical stops being triggered on a sustained move beyond the 1.0155-60 horizontal zone further aggravated the strong intraday bullish momentum to the highest level since Jan. 2017.

It would now be interesting to see if bulls maintain their dominant position or opt to take some profits off the table amid highly overbought conditions and ahead of this week’s important US macro data.  

Technical levels to watch