USD/CHF surges back closer to parity mark

   •  Resurgent USD demand lifts the pair back closer to parity mark.
   •  Recovering US bond yields lending additional support. 
   •  Additional gains dependent on FOMC and NFP. 

The USD/CHF pair gained some fresh traction on Tuesday and is now headed back towards the key parity mark.

The pair's latest leg of sharp up-move over the past couple of hours lacked any fresh fundamental driver and could be solely attributed to resurgent US Dollar. 

A goodish rebound in the US Treasury bond yields helped offset early weakness and supported the pair's strong bid tone through the mid-European session on Tuesday.

It, however, remains to be seen if bulls remain in control and lift the pair back above the parity mark amid concerns over a probe into possible Russian meddling in the 2016 US election and Fed Chair speculations. 

On the economic data front, the release of Employment Cost Index, Chicago PMI and Conference Board's Consumer Confidence Index, might provide some short-term trading impetus ahead of this week's key event risks - FOMC decision and the keenly watched NFP report. 

Technical levels to watch

Bulls would be eyeing for a clear break through the parity mark, above which the momentum could get extended towards 1.0035-40 zone (Friday's multi-month high) ahead of the 1.0100 handle.

On the flip side, 0.9970 level is likely to protect the immediate downside and is followed by a strong support near 0.9940 area, which if broken might trigger a corrective slide towards the 0.9900 handle en-route 0.9865-60 support.