USD/CHF surges to over 3-week highs near 100-DMA

The USD/CHF pair maintained its strong bid tone for the second straight session and surge to over 3-week highs near 1.0050 level. 

Spot built on yesterday's sharp break through the very important 200-day SMA and a follow through up-surge in the US treasury bond yields helped the key US Dollar Index to build on overnight strong rebound, eventually lifting the pair to its next important hurdle near 100-day SMA. 

Meanwhile, the prevalent risk-on environment, as depicted by positive trading sentiment surrounding global equity markets, further weighed on the Swiss Franc's safe-haven appeal and also collaborated to the pair strong up-surge to the highest level since April 17.

With a relatively thin US economic docket, focus would remain on speeches from couple of FOMC members for clues over the central bank's near-term monetary policy outlook, which should eventually provide some fresh impetus later during the day.

Technical levels to watch

A follow through buying interest has the potential to lift the pair towards 1.0090-1.0100 strong barrier, above which the pair seems all set to extend the ongoing upward trajectory towards its next major hurdle near 1.0145-50 region.

On the flip side, retracement back below 1.0030 level might now find fresh buying interest near the parity mark, which if broken could extend the corrective slide back towards 0.9980 intermediate support ahead of the 0.9955-50 region (200-day SMA).