USD/CHF jumps to six week tops amid notable USD demand

The greenback maintained its strong bid tone across the board, lifting the USD/CHF pair to six-week tops during early European session.

A combination of factors, ranging from a strong follow through greenback buying interest and some signs of stability in global financial markets were seen driving the pair higher for the second consecutive session. 

Tuesday's hawkish comments by the Fed Chair Janet Yellen, reaffirming gradual monetary policy tightening, coupled with the US President Donald Trump's tax overhaul plan underpinned the strong greenback demand, lifting the key US Dollar Index to one-month high on Wednesday. 

Meanwhile, a slight improvement in investors' appetite for riskier assets, as depicted by positive trading sentiment around European equity markets, was also seen weighing on the Swiss Franc's safe-haven appeal and further collaborated to the pair's strong up-move to its highest level since early August.

Next in focus would be the US economic docket, featuring the release of durable goods orders and pending home sales data, followed by the Fed Governor Lael Brainard's speech later during the NY trading session.

Technical levels to watch

Bulls would be eyeing for a follow through buying interest beyond 0.9775 level, above which the pair is likely to aim towards surpassing the 0.9800 handle and head towards testing the very important 200-day SMA hurdle near the 0.9855 region.

On the flip side, any retracement back below 0.9725 level now seems to find immediate support near the 0.9700 handle, which if broken could drag the pair back towards 100-day SMA support near the 0.9665 region.