USD/CHF extends rebound from 0.9840, hits fresh daily highs above 0.9870

• US Dollar gains momentum across the board during the American session. 
• USD/CHF rises after falling more than one hundred pips in three trading days. 

The USD/CHF pair dropped earlier today to test the 0.9840 key support but it held on top and rebounded. Over the last hour, it gained momentum and rose to 0.9875, hitting a fresh daily high. 

The US Dollar is correcting against European currencies on Monday and the DXY is moving slowly away from monthly lows it reached last week. It is up 0.05% while equity prices in Wall Street post gains. 

Traders await news regarding Brexit with the UK Parliament on focus and remain modestly optimistic about progress in trade war. US bond yields are higher today with the 10-year near 1.80%, offering support to the Greenback. 

Levels to watch 

The pair is recovering in the short-term, making a potential double bottom at 0.9840, with a neckline around 0.9865. Currently trades at 0.9870, the target of the formation might be located at 0.9890. On the flip slide, a consolidation under 0.9840 seems needed in order to clear the way to more losses. The next strong support is seen at 0.9805.