USD/CHF bounces off multi-month lows, 0.97 back on sight

After yesterday's slump to fresh multi-month lows, the USD/CHF pair staged a goodish recovery and attempted a move towards reclaiming the 0.9700 handle.

A sharp recovery in the US treasury bond yields extended some support to the greenback. In fact,  the key US Dollar Index is now looking to retake the 97.00 handle and has been a key factor supporting the pair's recovery move from the lowest level since the US Presidential election.

Meanwhile, market seems to have digested today's disappointing release of Chinese manufacturing PMI, with a modest pick-up in risk-on trade further denting the Swiss Franc's safe-haven appeal and collaborating to the pair's up-tick through early European session.

It, however, remains to be seen if the pair is able to build on the recovery move or is just a technical pull-back from near-term oversold conditions.

Later during the NA session, the US macro data - ADP report, weekly jobless claims and ISM manufacturing PMI, would now be looked upon for some fresh trading impetus ahead of the keenly watched NFP data on Friday.

Technical levels to watch

On a sustained momentum above the 0.9700 handle, the pair is likely to extend the recovery move towards 0.9730 horizontal resistance en-route 0.9760 level. Conversely, weakness back below 0.9675-70 area would turn the pair vulnerable to extend its near-term downward trajectory initially towards 0.9645-40 support and eventually towards 0.9610-0.9600 area.