USD/CHF adds to gains beyond 0.98 mark, pushes through 200-DMA barrier

The greenback continued strengthening across the board and pushed the USD/CHF pair further beyond the 0.9800 handle.

The pair traded with positive bias for the third consecutive session and has now added around 125-pips from last Friday's dismal US CPI-led swing lows in the 0.9700 neighborhood. 

A strong follow through US Dollar buying interest, supported by surging US Treasury bond yields, has been one of the key factors driving the pair higher, back closer to 4-1/2 month tops touched earlier this month.

Meanwhile, the prevalent risk-on environment did little to lend any support to the Swiss Franc's safe-haven appeal and stall the pair's strong up-move to 0.9825 level.

Currently trading marginally above the very important 200-day SMA, for the first time since mid-May, a follow through bullish momentum, led by additional short-covering, now seems a distinct possibility.

   •  USD/CHF tough resistance seen at 0.9850/85 – Commerzbank

On the economic data front, the US housing market data - housing starts and building permits, might help traders to grab some short-term trading opportunities. 

Technical levels to watch

On a sustained momentum beyond 0.9835 level, the pair is likely to dart towards 0.9860 horizontal resistance en-route the 0.9900 handle. On the downside, 0.9800 handle now becomes immediate support to defend, which if broken is likely to accelerate the fall towards 0.9755-50 horizontal support.