USD/CHF climbs to fresh session tops, inching back closer to 0.9700 handle

   •  Builds on overnight recovery move from 0.9600 handle despite persistent USD selling.
   •  Bullish traders seemed taking cues from the ongoing upsurge in the US bond yields.
   •  Risk-on mood seen weighing on CHF’s safe-haven appeal and remained supportive.

The USD/CHF pair built on the overnight steady climb from the 0.9600 handle, or five-month lows, and traded with a positive bias for the second consecutive session on Wednesday.

The pair continued gaining positive traction through the mid-European session and seemed rather unaffected by the prevalent US Dollar selling bias, despite the ongoing upsurge in the US Treasury bond yields. In fact, the 10-year yields climbed further beyond the 3.00% level and traded at levels seen in May but did little to revive the USD demand.

Bullish traders, however, seemed taking cues from a continuous improvement in investors' appetite for riskier assets, as depicted by a positive tone around European equity markets, which was seen denting the Swiss Franc's safe-haven status and providing a minor lift to the major.

It, however, remains to be seen if the up-move is backed by any genuine buying or is solely led by some short-covering amid near-term oversold conditions and especially after the recent fall of over 150-pips from the vicinity of the very important 200-day SMA.

Market participants now look forward to the US economic docket, highlighting the release of housing market data, in order to grab some short-term trading opportunities later during the early North-American session.

Technical levels to watch

Any further up-move beyond 0.9675 level is likely to get extended towards the 0.9700 handle before the pair eventually darts towards retesting 200-DMA hurdle, currently near the 0.9740 region. On the flip side, weakness back below mid-0.9600s might turn the pair vulnerable to head back towards challenging the 0.9600 handle.