USD/CHF spikes to fresh one-month tops, around mid-0.9700s

The USD/CHF pair built on previous session's bullish break through 100-day SMA hurdle and spiked to fresh one-month tops, around mid-0.9700s in the past hour.

The Federal Reserve on Wednesday clearly hinted towards the possibilities of an additional rate hike move by the end of this year. Hawkish Fed outlook underpinned the US Dollar demand and helped the pair to continue gaining traction through early NA session 

Meanwhile, the prevalent positive trading sentiment around European equity markets was further seen weighing on the Swiss Franc's safe-haven appeal and did little to hinder the pair's strong up-move to the highest level since mid-August. 

With today's up-move, the pair seems to have confirmed a near-term bullish break out, with a follow through momentum, even beyond multi-month tops resistance near the 0.9770-75 region, now seems a distinct possibility. 

Next on tap would be the second-tier US economic releases - weekly jobless claims and Philly Fed manufacturing index, which might assist traders to grab some short-term trading opportunities.

   •  US: Fed Philly index expected to fall in September – Danske Bank

Technical levels to watch

A follow through buying interest beyond 0.9770-75 immediate hurdle has the potential to continue lifting the pair even beyond the 0.9800 handle towards its next major hurdle near the very important 200-day SMA, around the 0.9865-70 region.

On the flip side, 0.9725 level now seems to act as immediate support, which is closely followed by the 0.9700 handle and 100-day SMA resistance turned support near the 0.9675 region.