USD/CHF gains further beyond 0.94 handle, jumps to near 3-week tops

   •  USD catches fresh bids during the early European session.
   •  Cautious equity markets could cap additional gains.
   •  US Q4 GDP growth numbers eyed for fresh impetus.

The USD/CHF pair continued gaining some positive traction for the fourth consecutive session and was now seen building on its bullish momentum further beyond the 0.9400 handle.

The US Dollar has been strengthening after the new Fed Chair Jerome Powell, during his first congressional testimony, fueled prospects for a faster monetary policy tightening cycle in 2018. The pair, however, struggled to build on the momentum and finally settle with only marginal gains, below the 0.9400 handle. 

The USD up-move gathered pace during the early European session and was seen as one of the key factors behind the pair's sharp upsurge over the past hour or so, to its highest level in nearly three-weeks. 

However, a weaker opening across European bourses, which tends to underpin the Swiss Franc's safe-haven demand, might once again collaborate towards keeping a lid on the pair's ongoing bullish momentum. Hence, traders are likely to wait for a strong follow-through buying before positioning for additional gains in the near-term. 

Later during the early NA session, the second estimate of the US Q4 GDP growth numbers would now be looked upon for some fresh bullish impetus. 

Technical levels to watch

Immediate resistance is pegged near 0.9450-60 area, above which the pair seems all set to dart towards reclaiming the key 0.9500 psychological mark. On the flip side, the 0.9400 handle now seems to protect the immediate downside, which if broken might turn the pair vulnerable to head back towards retesting the 0.9330-25 strong horizontal support.