USD/CHF holds steady near 1-1/2 week tops, just below mid-0.9700s

• USD/CHF consolidated recent gains to over one-week tops.
• The subdued trading action warrants some caution for bulls.

The USD/CHF pair consolidated the recent gains to 1-1/2 week tops and was seen oscillating in a range just below mid-0.9700s.

The safe-haven Swiss franc weakened against its American counterpart, which helped the pair to reverse an early dip and turn higher for the second consecutive session on Wednesday.

Geopolitical tensions in the Middle East de-escalated after the US President Donald Trump announced fresh sanctions on Iran and signalled that there would be no further military action.

The latest development helped boost the global risk sentiment and triggered a sharp intraday rally in the US Treasury bond yields, which underpinned the US dollar and remained supportive.

The USD buying interest remained unabated through the early European session on Thursday but failed to impress bullish traders or provide any meaningful impetus to the major.

Hence, it will be prudent to wait for some strong follow-through buying before positioning for any further near-term appreciating move amid absent relevant market moving economic releases.

Technical levels to watch