USD/CHF surges through 0.9700 mark, hits 1-week tops

• USD/CHF continued gaining traction for the fourth consecutive session on Thursday.
• A sudden pickup in the USD demand provided an additional boost in the past hour.
• Technical buying above the 0.9700 mark further contributed to the positive move.

The USD/CHF pair finally broke out of its daily consolidative trading range and spiked to one-week tops, over levels beyond the 0.9700 round-figure mark.

The pair built on this week's goodish recovery move from the key 0.9500 psychological mark, or near two-week lows and gained some follow-through positive traction for the fourth consecutive session on Thursday.

The latest leg of a sudden move up over the past hour or so was sponsored by a strong pickup in the US dollar demand since the early North-American session, despite another surge in the US initial weekly jobless claims.

The greenback remained well supported by its status as the global reserve currency amid mounting fears over the economic fallout from the coronavirus, with bulls shrugging off a fresh leg down in the US Treasury bond yields.

Apart from a broad-based USD strength, possibilities of some short-term trading stops being triggered on a sustained move above the 0.9700 mark further seemed to have contributed to the pair's ongoing positive momentum.

The pair has now moved back closer to 100-day SMA resistance, which if cleared decisively would set the stage for an extension of the momentum further beyond the 0.9800 round-figure mark, towards challenging the very important 200-day SMA.

Technical levels to watch