USD/CHF off lows, but hangs closer to multi-month lows

The USD/CHF pair came under some fresh selling pressure and eroded part of previous session's recovery gains from 7-month lows.

The pair, however, has managed to recover from session lows and is currently trading with only minor losses around 0.9640 region. A minor recovery around the greenback, with the key US Dollar Index bouncing off fresh multi-month lows near mid-96.00s, to recover from closer to the lowest level since Nov. touched in the aftermath of Friday's weaker headline NFP print.

Despite of the pull-back, the pair held with minor losses amid prevalent risk-off mood which tends to support the Swiss Franc's safe-haven appeal. Moreover, with June Fed rate-hike action nearly priced-in, fading expectations for an aggressive Fed rate-tightening cycle through 2017 might also keep a lid on any immediate swift recovery for the major. 

A relatively thin US economic docket, featuring the release of JOLTS job openings, is unlikely to provide any fresh impetus, with broader market sentiment surrounding the USD acting as an exclusive driver of the pair's movement on Tuesday.

Technical levels to watch

Momentum beyond 0.9650 level could get extended towards 0.9675 resistance, above which the pair seems to surpass the 0.9700 handle and head towards testing its next resistance near 0.9720-25 region. Meanwhile on the downside, sustained weakness below 0.9625-20 immediate support would point towards continuation of the pair's near-term downward trajectory and drag the pair immediately towards the 0.9600 handle en-route Nov. 2016 swing lows support near mid-0.9500s.