USD/CHF jumps to one week tops, around mid-0.9800s ahead of US GDP

   •  US bond yields lend some support to the US Dollar.
   •  Risk-on mood weighing on CHF’s safe-haven appeal.
   •  US GDP and Yellen’s testimony holds the key.

After an initial dip to 0.9820 area, the USD/CHF pair regained traction and turned higher for the third consecutive session.

A goodish pickup in the longer-dated US Treasury bond yields helped the US Dollar to recover early lost ground and has been one of the key factors driving the pair higher since the beginning of European trading session. 

Meanwhile, the market seems to have largely ignored North Korea's latest ballistic missile test, with a fresh wave of global risk-on trade, as depicted by prevalent bullish sentiment around equity markets, further weighing on the Swiss Franc's safe-haven appeal and collaborating to the pair's up-move to one-week tops near mid-0.9800s.

Investors now look forward to the first revision of the US Q3 GDP figures, which along with the outgoing Fed Chair Janet Yellen's testimony and progress over the long-awaited US tax cut bill would influence the pair's trajectory in the near-term.

Technical levels to watch

A follow-through buying interest has the potential to continue lifting the pair towards 0.9875-80 horizontal resistance en-route the 0.9900 handle. On the flip side, 0.9820 level now seems to act as immediate support and is closely followed by 200-day SMA near the 0.9800 handle. Weakness below the mentioned supports would turn the pair vulnerable to extend its bearish slide initially towards 100-day SMA support near the 0.9730 region.