USD/CHF moves back closer to near 1-year tops amid notable USD strength

   •  Resurgent USD demand helps break out of the Asian session consolidation phase.
   •  A slight deterioration in investors’ risk appetite does little to hinder the momentum.
   •  Trump’s decision on the Iran nuclear deal might set the course for near-term direction.

The USD/CHF pair finally broke out of its Asian session consolidation phase and spiked to fresh session tops in the last hour.

A fresh wave of US Dollar buying interest, triggered following the Fed Chair Jerome Powell's comments in Zurich, was seen as one of the key factors helping the pair to move back into positive territory for the third consecutive session.

Meanwhile, the market seems to have largely negated the prevailing negative trading sentiment around European equity markets, which tends to underpin the Swiss Franc's safe-haven appeal, with the USD price-dynamics acting as an exclusive driver of the pair's up-move during the early European session. 

The pair has now moved within striking distance of near 1-year tops, touched in the previous session, as investors now look forward to the US President Donald Trump's decision on the Iran nuclear deal. The announcement is scheduled later during the NY trading session and would set the tone for global financial markets, eventually providing some fresh directional impetus to the major.

Technical levels to watch

A convincing move back above 1.0050 area should continue boosting the pair further towards reclaiming the 1.0100 handle. On the flip side, any meaningful retracement now seems to find immediate support near the parity mark, which if broken might prompt some long-unwinding trade and drag the pair further towards 0.9965-60 support area.