USD/CHF recovers from multi-month lows but lacks strong follow through momentum

The USD/CHF pair staged a minor recovery and reversed majority of previous session's losses to fresh 7-month lows, around the 0.9600 neighborhood. 

Currently trading around 0.9640 region, testing session tops, hopes for an eventual Fed rate-hike action on June 14 lifted the US treasury bond yields across the curve and underpinned the greenback demand. In fact, the key US Dollar Index has managed to rebound from the lowest level since the US Presidential election in November and has been the key factor driving the pair higher. 

The up-move, however, seems to be lacking any follow through strong momentum amid prevalent cautious environment, which tends to benefit the Swiss Franc's safe-haven appeal, ahead of Thursday's big event risks - the UK general election and former FBI Director James Comey's testimony. 

Today's US economic docket lacks any fresh fundamental drivers and hence, broader market risk sentiment and the US bond yield dynamics would remain key determinants of the pair's movement through Wednesday's trading session.

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 its next resistance near 0.9720 region. 

Alternatively, weakness below multi-month lows support near 0.9615 level would point towards continuation of the pair's near-term downward trajectory and accelerate the slide towards Nov. 2016 swing lows support near mid-0.9500s.