USD/CHF surges to parity mark ahead of US trade balance figures

A fresh wave of greenback buying interest helped the USD/CHF pair to finally break through recent trading range and surge to multi-day tops near parity mark.

The US Dollar continued gaining traction through European session on Tuesday, supported by recovery in the US Treasury bond yields. Adding to this, positive sentiment surrounding European equity markets, pointing to improving investors' risk appetite, is further denting demand for traditional safe-haven currencies, including the Swiss Franc, and collaborating to the pair's strong up-move on Tuesday.

It, however, remains to be seen if the current leg of move would be sustained against the backdrop of Trump's protectionist stance and recent jawboning over the US Dollar strength. 

From technical perspective, the pair's ability to defend the very important 200-day SMA, and a subsequent recovery back to 1.00 handle, suggests continuation of the near-term recovery trend. 

On economic data front, traders will look forward to the release of US trade balance data, due later during NA session, in order to grab some short-term trading opportunities.

Technical levels to watch

The momentum seems strong enough to lift the pair towards 1.0020-25 horizontal resistance above which the up-move is likely to get extended towards 1.0045 level (Jan. 30 high). On the downside, 0.9980 level now becomes immediate support, which if broken could drag the pair back towards 0.9955-50 support area ahead of 0.9925 horizontal support.