USD/CHF recovers from multi-month lows, back closer to 0.96 handle

The USD/CHF pair staged a goodish recovery back closer to the 0.9600 handle and recovered all of its previous session's losses to multi-month lows. 

The greenback selling pressure seems to have abated, at least for the time being, with the key US Dollar Index rebounding from the lowest level since late Sept. and helped the pair to recover from mid-0.9500s, the lowest level since the US Presidential election. 

Adding to this, some signs of stability in the European equity markets, pointing to a slight improvement in investors' risk appetite was also seen weighing on the Swiss Franc's safe-haven appeal and further collaborated to the pair's recovery move back closer to the 0.9600 handle. 

It, however, remains to be seen if the pair is able to build on the recovery move or runs through some fresh offers at higher level amid subdued action around the US Treasury bond yields. 

Next on tap would be the US economic docket, featuring the release of Core PCE Price Index, Personal income/spending data, Chicago PMI and Revised UoM Consumer Sentiment Index, would now be looked upon for some fresh impetus. 

   •  US: Core PCE and Chicago PMI in focus – Danske Bank

Technical levels to watch

A strong follow through buying interest beyond the 0.9600 handle is likely to trigger a fresh bout of short-covering and continue lifting the pair further towards 0.9685-90 horizontal zone with some intermediate resistance near 0.9650 region.

On the flip side, bears would be targeting a break below the 0.9560-55 region, which if broken is likely to accelerate the slide towards 0.9530-25 support ahead of the key 0.9500 psychological mark.