USD/CHF bulls challenge 200-DMA key hurdle, just below 0.9800 mark
- USD/CHF continued scaling higher for the fourth consecutive session on Thursday.
- The prevalent risk-on mood and a pickup in the USD demand remained supportive.
- A sustained move beyond the 0.9800 mark needed to confirm a fresh bullish break.
The USD buying interest picked up additional pace during the early North-American session and lifted the USD/CHF pair to over one-week tops, around the 0.9785 region.
A combination of supporting factors assisted the pair to built on its recent bounce from sub-0.9600 levels and continue gaining positive traction for the fourth consecutive session on Thursday.
Thursday's upbeat Chinese trade balance figures fueled speculations that the world's second-largest economy could recover quicker than anticipated from the coronavirus-induced lockdowns.
This, in turn, boosted investors' confidence and the same was evident from a strong rally in the global equity markets, which eventually undermined the Swiss franc's perceived safe-haven demand.
Apart from this, some renewed US dollar buying since the mid-European session – despite a weaker tone surrounding the US Treasury bond yields – further contributed to the ongoing positive momentum.
Meanwhile, data released this Thursday showed 3.169 million Americans applied for unemployment-related benefits last week, worse than 3 million anticipated, albeit did little to provide any impetus.
The swissy was last seen hovering around the very important 200-day SMA, just below the 0.9800 handle, which if cleared decisively will set the stage for a further near-term appreciating move.
Hence, it will be prudent to wait for a sustained strength beyond the mentioned barrier before confirming a bullish breakout and positioning for a move towards the 0.9855-60 supply zone.
Technical levels to watch