• Catches some aggressive bids despite a modest USD profit-taking slide.
• Risk-on mood/surging US bond yields remained supportive of the move.
The USD/CHF pair continued gaining positive traction through the early North-American session and is now fast approaching the overnight swing high to near three-month tops.
Having broken out of the Asian/early European session consolidation phase, the pair picked up the pace and built on its recent bullish trajectory from the 0.9900 neighbourhood, or the very important 200-day SMA support.
The strong intraday up-move seemed rather unaffected by a modest US Dollar pull-back from multi-week tops, with bulls taking cues from the prevalent risk-on mood, which tends to dent the Swiss Franc’s relative safe-haven status.
Optimism over a possible resolution of the US-China trade disputes boosted investors’ appetite for riskier assets – like equities and was further reinforced by a follow-through upsurge in the US Treasury bond yields.
It would now be interesting to see if bulls finally make it through the 1.0100 handle or the up-move once again fizzles out at higher levels as the focus now shifts to speeches by several FOMC officials, including the Fed Chair Jerome Powell.
Technical levels to watch
On a sustained move beyond the mentioned handle, the pair is likely to aim towards Nov. swing high resistance near the 1.0125-30 region before eventually darting to reclaim the 1.0200 round figure mark. Alternatively, any immediate pull-back now seems to find support near the 1.0050 region, which if broken might prompt some additional long-unwinding trade and accelerate the fall back towards the parity mark.