USD/CHF holds above parity mark, closer to near 1-year tops

   •  Surging US bond yields help limit USD profit-taking slide.
   •  Positive US equities weigh on CHF’s safe-haven demand.
   •  The ongoing bullish run might still be far from over.

The USD/CHF pair reversed an early NA session dip to the parity mark and is now holding with modest daily gains, around the 1.0025-30 region.

Against the backdrop of a modest US Dollar profit-taking slide witnessed on Wednesday, the pair extended its retracement slide from an intraday higher level of 1.0043 and dropped to fresh session lows in reaction to softer-than-expected US PPI print for April.

The fall, however, was quickly bought into amid the prevailing bullish sentiment around the US Treasury bond yields, which helped limit any deeper USD retracement. This coupled with a positive opening in the US equity markets weighed on the Swiss Franc's safe-haven appeal and further assisted the pair to rebound around 25-30 pips from lows.

Meanwhile, the recent price-action, over the past two-trading session, would still be categorized as a consolidation phase, especially after the pair's strong upsurge of over 500-pips since early April, indicating that the pair's bullish momentum might still be far from over.

Technical levels to watch

Bulls would be eyeing for a decisive breakthrough the 1.0055-60 immediate supply zone, above which the pair seems all set to aim towards reclaiming the 1.0100 round figure mark. On the downside, the parity mark might continue to protect the immediate downside, which if broken might prompt some long-unwinding trade and drag the pair back towards 0.9960 support area.