USD/CHF stages a goodish recovery from 7-month lows

The USD/CHF pair staged a goodish recovery on Monday and recovered part of Friday's disappointing US jobs data-led sharp fall to the lowest level since the US Presidential election in November.

The pair remained well bid at the start of a new trading week amid firm hopes for an eventual Fed rate-hike action on June 14, which lifted the US treasury bond yields across the board and helped the key US Dollar Index to recover a from near seven-month lows touched in the aftermath of Friday's weaker-than-expected May jobs report. 

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Meanwhile, softer May jobs data, coupled with a sharp downward revision to previous month's reading, now seems to have faded expectations for an aggressive Fed rate-tightening cycle and hence, it would now be interesting to see if the pair is able to build on the recovery gains or today's up-move just turns out to be a short-covering bounce from near-term oversold conditions.

Next in focus would be the US economic docket, featuring the release of revised nonfarm productivity, ISM non-manufacturing PMI and factory orders data, which might provide some impetus for short-term traders. 

Technical levels to watch

Immediate resistance is pegged near 0.9675 level, above which a fresh bout of short-covering could lift the pair beyond the 0.9700 handle towards testing its next resistance near 0.9720 region. 

Conversely, weakness back below 0.9625-20 immediate support would suggest that the pair's near-term downward trajectory is yet far from over and accelerate the slide towards the 0.9600 handle en-route Nov. 2016 swing lows support near mid-0.9500s.