USD/CHF jumps to one week highs near mid-0.9600s

The USD/CHF pair continued gaining traction for the third consecutive session and has now jumped to a one-week high near mid-0.9600s.

A fresh wave of greenback buying interest, with the key US Dollar Index adding to gains beyond the 96.00 handle helped the pair to extend its recovery move from near 8-month lows touched last week. 

Recent pick up in the US Treasury bond yields coupled with Monday's upbeat US ISM manufacturing PMI remained supportive of the US Dollar's recovery move and is eventually driving the pair higher, further beyond the 0.9600 handle.

Meanwhile, the prevalent cautious environment, as depicted by a mildly weaker trading sentiment around European equity markets, did little to boost the Swiss Franc's safe-haven appeal, with the USD dynamics acting as an exclusive driver of the pair's movement on a holiday-thinned trading session on Tuesday. 

   •  USD/CHF down move could be exhausted

Technical levels to watch

Immediate resistance is pegged near 0.9685 level, above which the pair is likely to continue with its recovery trend further towards its next major hurdle near mid-0.9700s. On the flip side, 0.9620 level now seems to protect the immediate downside, which if broken drag the pair back below the 0.9600 handle towards 0.9585 horizontal support en-route multi-month lows support near 0.9550 area.