USD/CHF tests parity mark for the first time since mid-May, US GDP eyed

   •  Testing parity for the first time since mid-May.
   •  Resurgent USD and US bond yields supportive. 
   •  Focus turns to US GDP numbers.

The greenback held on to its strong gains, now pushing the USD/CHF pair to the parity mark for the first time since mid-May.

The pair built on overnight strong gains and was being supported by resurgent US Dollar. Optimism over Trump's tax reform and speculation over a more hawkish Fed Chair nomination underpinned the greenback demand. 

Meanwhile, a fresh wave of global risk-on trade, reinforced by a renewed pickup in the US Treasury bond yields, was also seen denting the Swiss Franc's safe-haven appeal and did little to stall the pair's strong up-move to over 5-month tops.

Investors now look forward to the key release of advance US Q3 GDP growth numbers, which should influence the prevalent highly bullish sentiment around the USD and provide a fresh directional impetus for the major.

Technical levels to watch

A strong follow-through traction has the potential to continue lifting the pair towards 1.0050 intermediate resistance ahead of the 1.0095-1.0100 region. 

On the flip side, 0.9975-70 area might now protect the immediate downside, which if broken might trigger a corrective slide back towards the 0.9910-0.9900 region with some intermediate support near 0.9940 level.