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USD/CHF refreshes session tops and eases, holds steady above mid-0.9700s

  • USD/CHF attracts some dip-buying amid the prevailing risk-on mood.
  • The USD finds support from a goodish pickup in the US bond yields.
  • Bulls seemed reluctant amid absent relevant fundamental catalysts.

The USD/CHF pair reversed an early dip to weekly lows and climbed to fresh daily tops, around the 0.9760-65 region during the early North-American session.

The pair witnessed some follow-through long-unwinding through the early part of Wednesday's trading session and extended its retracement slide from seven-week tops set in the previous session. However, a combination of factors attracted some dip-buying at lower levels and helped limit the downside.

Bulls await fresh catalyst

Despite concerns over the economic impact of the deadly coronavirus, the prevailing risk-on mood dented demand for traditional safe-haven currencies, including the Swiss franc. This eventually turned out to be one of the key factors behind the pair's goodish intraday bounce of around 20-25 pips from daily lows.

Meanwhile, the US dollar consolidated its recent gains and stood tall near multi-month. The bullish sentiment surrounding the greenback was further supported by a strong pickup in the US Treasury bond yields, which provided an additional boost to the major and remained supportive.

The uptick, however, lacked bullish conviction and lacked any strong follow-through buying amid absent relevant fundamental catalyst. Investors now look forward to the Fed Chair Jerome Powell's second day of testimony, this time before the Senate Housing Committee, in order to grab some short-term trading opportunities.

Technical levels to watch

 

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