USD/CHF dip below 0.9900 is likely to be short-lived

The US Dollar bulls refuse give-up as every dip in the USD/CHF pair is being bought into and the pair maintained its bid tone above 0.9900 handle.

A sudden turnaround in the sentiment surrounding the greenback over the past few weeks got further traction after the release of FOMC April meeting minutes on Wednesday, which turned out to be more hawkish than market participants were expecting.

From technical perspective, the pair has managed to break through and important confluence resistance near 0.9835-40 area and has subsequently strengthened above 0.9900 handle. Moreover, fresh bids have emerged on every dip, clearly suggesting that the break-out momentum is far from being exhausted.

Levels to watch

From current levels, the ongoing bid tone seems likely to continue till 0.9945-50 intermediate resistance, above which the pair seems all set to reclaim parity mark.

On the flip side, any follow through weakness below 0.9900 round figure mark now seems to find immediate support near 0.9880-75 horizontal zone, which is followed by the confluence resistance break-point turned support near 0.9840-35.