USD/CHF sits at over 1-week tops, comfortably above 0.9800 handle

   •  Fed rate hike expectations continue to boost USD.
   •  Fading safe-haven demand provides an additional boost.
   •  Technical factors look supportive for additional gains.

The USD/CHF pair continued gaining positive traction through the early NA session and is currently placed just below one-week tops, around the 0.9825 region.

The pair built on last week's recovery move from the 0.9700 handle and got an additional boost from a strong follow-through US Dollar buying interest, backed by growing bets that the Fed would raise interest rates at least three times in 2018.

Adding to this, the prevalent risk-on environment, as depicted by the recent bullish run-up in global equity markets to repeated all-time record highs, was seen denting the Swiss Franc's safe-haven appeal and further collaborated to the pair's bullish momentum on Tuesday.

Today's strong up-move could also be attributed to some short-covering move following a sustained break through important moving averages (100 & 200-day) confluence barrier near the 0.9790-0.9800 region.

It would now be interesting to see if bulls are able to maintain their dominant position or resort to some profit-taking, especially after the recent upsurge of around 140-pips over the past one-week and in absence of any major market moving economic releases.

Technical levels to watch

A follow-through buying interest beyond mid-0.9800s now seems to assist the pair to make an attempt towards reclaiming the 0.9900 handle. On the flip side, the 0.9800-0.9790 confluence region now seems to protect the immediate downside, which if broken might accelerate the slide back towards 0.9735-30 horizontal support en-route the 0.9700 handle.