USD/CHF surges to 4-day tops, around mid-0.9300s
| • USD recovery gains traction from rising US bond yields.
• Improving risk appetite weighs on CHF’s safe-haven appeal.
The USD/CHF pair built on its recent recovery move from Friday's 20-month lows and strengthened further beyond the 0.9300 handle.
The pair continued gaining positive traction for the third consecutive session and has now gained around 150-pips, supported by a strong follow-through US Dollar buying interest.
Against the backdrop of growing market expectations that the Fed might opt for a faster monetary policy tightening cycle, a fresh wave of an upsurge in the US Treasury bond yields provided an additional boost to the greenback's ongoing recovery move from over 3-year lows and was seen as one of the key factors behind the pair's up-move.
Meanwhile, improving investors' appetite for riskier assets, as depicted by a positive trading sentiment around European equity markets, was seen weighing on the Swiss Franc's safe-haven appeal and further collaborated to the pair's strong up-move to 4-day tops, near mid-0.9300s.
There isn't any major market-moving economic data due for release on Tuesday and hence, the USD price dynamics and broader market risk sentiment might continue to act as key determinants of the pair's momentum.
Technical levels to watch
On a convincing break through 0.9350-55 area, the pair seems all set to aim towards reclaiming the 0.9400 handle before eventually darting back towards its next major supply zone near mid-0.9400s.
On the flip side, 0.9320 level, closely followed by the 0.9300 handle, now seems to protect the immediate downside, which if broken might turn the pair vulnerable to drop back towards the 0.9200 handle.
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