USD/CHF rallies to over 2-week tops, beyond 0.9600 mark
- USD/CHF caught some fresh bids on Tuesday amid a strong pickup in the USD demand.
- Receding demand for safe-haven assets weighed on the CHF and remained supportive.
The USD/CHF pair continued scaling higher and shot to over two-week tops, levels beyond the 0.9600 mark during the early North-American session.
A combination of supporting factors – including a strong pickup in the US dollar demand – assisted the pair to catch some fresh bids on Tuesday and build on its recent strong recovery move from over 4-1/2 year lows.
As investors looked past the Fed's aggressive move to slash interest rates to zero, the greenback managed to attract some aggressive buying and was further supported by a goodish pickup in the US Treasury bond yields.
The greenback maintained its strong bid tone following the disappointing release of US monthly retail sales for February, which was largely offset by an upward revision of the previous month's readings and did little to provide any impetus.
Meanwhile, a modest recovery in the global risk sentiment, as depicted by a positive opening in the US equity markets, undermined the Swiss franc's perceived safe-haven demand and remained supportive of the positive move.
Adding to this, possibilities of some short-term trading stops being triggered on a sustained move beyond the 0.9550-60 supply zone further seemed to have contributed to the pair's latest leg of a sudden upsurge over the past couple of hours.
Hence, it will be prudent to see if the momentum is backed by any genuine buying or is just a stop run, which runs the risk of fizzling out rather quickly amid mounting fears about the economic impact of the coronavirus pandemic.
Technical levels to watch