USD/CHF bulls eyeing a move back above 0.9900 handle

   •  Regains traction on the back of renewed USD buying interest/positive US bond yields.
   •  Fading safe-haven demand weighing on CHF and remain supportive of the up-move.

The USD/CHF pair finally broke out of its Asian session consolidation phase and is currently placed at fresh session tops, eyeing to reclaim the 0.9900 handle. 

A modest pickup in the US Dollar demand at the start of a new trading week, backed by an uptick in the US Treasury bond yields, helped the pair to recover Friday's modest retracement slide from YTD tops. 

This coupled with improving investors’ appetite for riskier assets, as depicted by a positive trading sentiment around equity markets, was seen denting Swiss Franc's (CHF) safe-haven demand.

The CHF was further weighed down by declining KOF Economic Barometer, which fell to multi-month low level of 105.3 in April and collaborated to the pair's up-move back closer to the 0.9900 handle. 

It, however, remains to be seen if bulls are able to maintain their dominant position or the pair continues with its struggle to build on the momentum beyond the 0.9900 round figure mark. 

Traders now look forward to the US economic docket, featuring the release of personal income/spending data, Core PCE Price Index - the Fed's preferred inflation gauge, and followed by Chicago PMI, in order to grab some short-term opportunities.

Technical levels to watch

A convincing break through the 0.9900 handle, leading to a subsequent move beyond 0.9920 level is likely to continue boosting the pair further towards 0.9945-50 supply zone. On the flip side, 0.9870 level now seems to have emerged as an immediate support, which if broken might accelerate the slide back towards 0.9835 intermediate support en-route the 0.9800 handle.