USD/CHF stages a minor recovery after overnight slump to 3-week lows

After yesterday's slump to three-week lows, the USD/CHF pair staged a minor recovery and is currently placed at session tops near 0.9975 region.

The incoming US economic data continues to disappoint and has been weighing on the greenback, dragging the pair to its lowest level since late March on Tuesday. However, a modest US Dollar recovery on Wednesday, backed by a minor up-tick in the US treasury bond yields, helped the pair to catch some fresh bids from the vicinity of the very important 200-day SMA. 

   •  US: Hard data continues to lag elevated soft data - ANZ

Meanwhile, the ongoing geopolitical tensions and uncertainty ahead of the crucial French Presidential elections should continue to support the Swiss Franc's safe-haven appeal and is more likely to cap any sharp recovery for the major, at least for the time being. 

The US economic docket lacks any relevant market moving economic releases and hence, the US Dollar price dynamics would remain an exclusive driver of the pair's move on Wednesday. 

Technical levels to watch

Any additional recovery now seems to confront resistance near the parity mark, which if cleared decisively might trigger a short-covering rally towards 1.0020 intermediate resistance en-route 1.0040-45 strong hurdle. 

On the downside, weakness below multi-week lows support near 0.9955 level is likely to find support near 0.9940 region (200-day SMA), below which a fresh leg of weakness could drag the pair back towards the 0.9900 handle.