USD/CHF surges to multi-week tops with Fed minutes in focus
The USD/CHF pair maintained its strong bid tone for the fourth consecutive session and jumped to nearly six week highs on Wednesday.
Currently trading around 1.0135-40 region, a follow through greenback buying interest, with the key US Dollar Index touching its highest level in more than five weeks, has been the key factor driving the pair higher.
Moreover, possibilities of short-covering, following a sustained move above 1.0100 handle, might have also collaborated to the pair's strong up-surge through European trading session.
Meanwhile, repositioning ahead today's key event risk - the FOMC meeting minutes, further aggravated the short-dollar unwinding pressure and lifted the pair to its highest level since December 12.
It, however, remains to be seen if the pair is able to build on the break-out momentum amid mildly cautious trading sentiment, which tends to benefit the Swiss Franc's safe-haven demand.
Investors on Wednesday will closely scrutinize the minutes in order to evaluate the likelihood of a March Fed rate-hike move, which would eventually assist to determine the next leg of directional move for the major.
Technical levels to watch
Momentum above 1.0150 level could get extended towards 1.0170 resistance area above which the pair is likely to aim towards reclaiming 1.0200 handle and head towards its next major resistance near 1.0250 area.
On the downside, retracement below 1.0120 level might now find support at 1.0100 mark, which if broken seems to drag the pair back towards 1.0065-60 horizontal support.