USD/CHF clings to strong gains beyond 1.00 mark

The USD/CHF pair built on to its bullish momentum beyond parity mark and has now risen to the highest level since March 10.

Currently trading at 1.0050 level, the pair caught fresh bids at session low level of 0.9983 and turn higher for the seventh straight session amid renewed greenback strength, as measured by the US Dollar Index, now clinching fresh 2016 tops around 100.45. 

The US Dollar has been able to attract follow through buying interest since the US presidential elections on expectations of fiscal spending by Trump administration, which would fuel inflation and force the Federal Reserve to raise interest rates. Meanwhile, the recent sell-off in global Treasury bonds (surging yields) has also contributed to the ongoing US Dollar rally, thus helping the pair to scale new heights.

Today's US economic docket features the release of PPI, industrial production and capacity utilization rate, and would be looked upon to grab some short-term trading opportunities.

Technical levels to watch

Momentum above 1.0050 could get extended towards 1.0085-90 (March 10 high) above which the pair seems all set to surpass 1.0100 handle and aim towards 1.0120-25 resistance area. On the downside, weakness below 1.0030 now seems to find support at parity mark, which if broken is likely to drag the pair below session low support near 0.9985-80 region towards testing its next support near 0.9955-50 region.

To learn more about this topic, check our video analysis