USD/CHF jumps to fresh multi-month tops, inching closer to 0.99 handle

After an initial dip to 0.9830 level, the USD/CHF pair regained traction and jumped to over 5-month tops during mid-European session on Monday.

Growing hopes for US tax reforms underpinned the US Dollar demand and remained supportive of the strong bid tone surrounding the major. Adding to this, the prevalent risk-on environment further weighed on the Swiss Franc's safe-haven appeal and collaborated to the pair's up-move to its highest level since mid-May. 

In absence of any fresh fundamental development, today's strong bullish momentum could also be attributed to some follow through technical buying, especially after Friday's bullish break through the very important 200-day SMA barrier. 

There aren't any market moving economic releases due from the US and hence, broader market sentiment and the USD price dynamics would remain key determinants of the pair's movement at the start of a new trading week.

Technical levels to watch

Immediate resistance is pegged near the 0.9900 handle, above which the up-move is likely to get extended towards 0.9930-35 hurdle en-route 0.9965 horizontal resistance. 

On the flip side, any profit taking slide now seems to find immediate support near mid-0.9800s and any subsequent retracement is likely to be limited at 200-day SMA support near the 0.9815 region.