USD/CHF jumps to fresh yearly tops, inching towards mid-0.9900s

   •  Resurgent US bond yields supportive of a broad-based USD strength.
   •  CHF further weighed down by fading safe-haven demand.
   •  A follow-through buying needed to confirm near-term bullish bias.

The USD/CHF pair continued gaining positive traction on Tuesday and rose further beyond the 0.9900 handle to fresh YTD tops.

After Friday's brief pause, the pair resumed with its prior appreciating move and traded with a positive bias for the tenth session in the previous eleven. The ongoing strong bid tone surrounding the US Dollar, backed by a goodish pickup in the US Treasury bond yields was seen as one of the key factors behind the pair's recent upsurge.

Adding to this, improving investors’ appetite for riskier assets, and positive geopolitical developments in the Korean Peninsula weighed on Swiss Franc's safe-haven appeal and further collaborated to the pair's strong bullish momentum to the highest level since December 2017.

Meanwhile, possibilities of some short-term trading stops being triggered on a move beyond the 0.9920 level might have also collaborated to the pair's latest leg of a sharp uptick of around 20-pips over the past hour or so. Hence, it would be prudent to wait for a strong follow-through buying before positioning for any additional near-term up-move.

Later during the early NA session, the release of US ISM manufacturing PMI might influence the USD price dynamics and help traders grab some short-term opportunities.

Technical levels to watch

Bulls would be eyeing for a clear break through the 0.9945-50 supply zone, above which the pair is likely to aim towards reclaiming the parity mark en-route 1.0035 resistance. On the flip side, weakness back below the 0.9920-0.9900 region might prompt some long-unwinding trade and drag the pair back towards 0.9865-60 horizontal support.