USD/CHF hits 0.9900 mark for the first time since early June

Extending its bullish momentum above 200-day SMA, the USD/CHF pair surged to 0.9900 handle for the first time since early June. 

The US Dollar maintained its strong bid tone as the incoming data continued pointing towards the inherent strength of the US economic recovery and is thus, fueling speculations of an imminent Fed rate-hike later during this year. The CME group's Fed Fund rate tool is now pricing-in a 40% probability of such an action in December.

In absence of any economic releases on Wednesday, the pair seems more likely to continue gaining traction amid prevalent risk-on sentiment that has been driving flows out of the perceived safety of the Swiss Franc.

From technical perspective, the pair now needs to sustain its strength above the very important 200-day SMA level in order to confirm a break-out, which might continue assisting the pair to scale higher in the near-term.

Technical levels to watch

On the immediate upside, momentum above 0.9920 (June 3 high) is likely to get extended towards 0.9950 (May monthly highs), above which the pair seems all set to extend its near-term bullish trajectory.

On the flip side, 200-day SMA near 0.9850 now becomes immediate support. Any weakness below this immediate support might now be bought into and hence, is likely to limit further downside for the pair near 0.9825-20 horizontal support.