USD/CHF flirts with 100-day SMA hurdle, around mid-0.9100s

• USD/CHF regained positive traction on Monday amid the risk-on environment.
• The emergence of fresh selling around the USD did little to hinder the move up.
• Investors look forward to Powell’s remarks for some short-term trading impetus.

The USD/CHF pair refreshed daily tops, around 0.9155 region during the mid-European session, with bulls making a fresh attempt to build on the momentum beyond 200-day SMA.

The underlying bullish sentiment in the financial markets undermined demand for the safe-haven Swiss franc and assisted the USD/CHF pair to catch fresh bids on the first day of a new week. The passage of a long-delayed $1 trillion US infrastructure bill added to the optimism over the global economic growth and turned out to be a key factor that boosted investors' confidence.

Bulls seemed unaffected by the emergence of some selling around the US dollar, which, so far, has failed to gain any traction despite a solid rebound in the US Treasury bond yields. Investors looked past the Fed's dovish message last week and seem convinced that the US central bank would be forced to adopt a more aggressive policy response to contain stubbornly high inflation.

It, however, remains to be seen if the USD/CHF pair is able to capitalize on the move or meet with fresh supply at higher levels. In the absence of any relevant market-moving economic releases from the US, traders on Monday will take cues from Fed Chair Jerome Powell's remarks at an online conference. This, along with the US bond yields, will influence the USD and provide some impetus.

Meanwhile, the key focus will remain on the latest US consumer inflation figures, scheduled for release on Wednesday. The data will drive expectations about the likely timing when the Fed could tighten its monetary policy and play a key role in determining the next leg of a directional move for the USD/CHF pair.

Technical levels to watch