USD/CHF clocks fresh 2-month highs above 0.9950

The ongoing bullish momentum behind the greenback amid increased odds of a June Fed rate hike continues to underpin the upward rally in the USD/CHF to fresh two-month tops.

USD/CHF trades above all major DMAs

Currently, the USD/CHF pair trades +0.06% higher at fresh two-month highs of 0.9955, building onto last week’s gains above 0.99 handle. The major took the positive lead from Yellen’s renewed optimism over the US economic prospects and benefited from broad based US dollar strength. While risk-on rally witnessed in the US and Asian equities, diminished the safe-haven bids for the CHF and therefore, underpinned the bids around USD/CHF.

In the day ahead, the major is likely to take cues from the broader market sentiment amid thin trades as the US and London markets are closed on account of public holidays. Markets now await the KOF economic indicator due shortly for fresh impetus on the Swiss franc.

USD/CHF Technical Levels

To the upside, the next resistance is located at 1.0000 (parity) and above which it could extend gains to 1.0043 (Feb 28 High). To the downside, immediate support might be located at 0.9931/21 (5 & 10-DMA) and below that 0.9851 (200-DMA).