USD/CHF surges to 2-month tops, inching closer to mid-0.9800s
- USD/CHF showed some resilience below 0.9800 mark and regained traction.
- Upbeat US macro data provided an additional boost to the stronger USD.
- Technical buying might continue to fuel the ongoing positive momentum.
The USD/CHF pair caught some fresh bids during the early North-American session and jumped to near two-month tops, around the 0.9840 region in the last hour.
The pair quickly reversed an early dip to sub-0.9800 levels and moved back into the positive territory amid resurgent US dollar demand. Following the previous session subdued price action, the greenback regained some traction on Tuesday and stood tall near 4-1/2 month tops.
Bulls remain in control amid stronger USD
The already strong buck got an additional boost following the release of stronger-than-expected Empire State Manufacturing Index. In fact, the gauge jumped to 12.9 for February as compared to consensus estimates pointing to a modest uptick to 5 from 4.8 previous.
Meanwhile, the USD bulls seemed rather unaffected by a sharp intraday fall in the US Treasury bond yields, led by a fresh wave of the global risk-aversion trade and which tends to underpin demand for traditional safe-haven currencies, including the Swiss franc.
Adding to this, possibilities of some short-term trading stops being triggered above the recent swing high further seemed to have contributed to the pair's accelerated positive move over the past hour or so. Hence, some follow-through strength, sponsored by fresh technical buying, now looks a distinct possibility.
Technical levels to watch