USD/CHF inching back closer to multi-month tops
• Softer Swiss CPI helps build on Friday’s post-NFP rebound.
• Retracing US bond yields/safe-haven demand caps up-move.
• Breakthrough 1.0035-40 area need to confirm bullish outlook.
The USD/CHF pair continued gaining some positive traction through the early European session on Monday and inched back closer to near 6-month highs touched recently.
The pair built on Friday's late rebound from 0.9950-45 horizontal support and got an additional boost from today's slightly weaker than expected Swiss consumer inflation figures, coming in to show an uptick of 0.1% m-o-m (0.2% expected) in October.
Meanwhile, a consolidative US Dollar price action, led by retracing US Treasury bond yields, did little to provide any fresh bullish impetus. Moreover, the prevalent cautious sentiment around equity markets was also seen lending support to the Swiss Franc's safe-haven appeal and might now contribute towards capping any further up-move.
Hence, traders are likely to wait for a sustained break through the 1.0035-40 supply zone before positioning for any additional up-move amid empty economic docket on Monday.
Technical levels to watch
A follow-through buying interest beyond the mentioned hurdle should pave the way for an extension of the pair's upward trajectory towards the 1.0100 handle en-route 1.0145-50 barrier.
On the flip side, the key 1.0000 psychological mark now seems to protect the immediate downside, which if broken could accelerate the slide back towards the 0.9950-45 support area.