USD/CHF stages a goodish recovery from sub-0.9600 level

The USD/CHF pair staged a goodish recovery from sub-0.9600 level and recovered part of previous session's softer ADP report-led losses. 

With investors looking past yesterday's disappointing private sector employment data from the US, a modest pickup in the US Dollar demand helped the pair to stall its retracement move from over one-week highs, just below the 0.9700 handle touched on Wednesday. 

It, however, remains to be seen if the pair is able to build on the recovery move amid deteriorating risk appetite, which tends to boost demand for traditional safe-haven currencies, including the Swiss Franc. Geopolitical tensions escalated N. Korea successfully test-launched an intercontinental ballistic missile on Tuesday and has been weighing on investors' sentiment.

Today's focus would be on the keenly watched US monthly jobs report (NFP), which might have an impact on the Federal Reserve’s path for monetary policy normalization and eventually determine the greenback's next leg of directional move. 

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Technical levels to watch

Currently trading around 0.9620 level, immediate resistance is pegged near 0.9640-50 region, above which the pair is likely to aim back towards reclaiming the 0.9700 handle en-route the next resistance near 0.9720-25 area. 

On the downside, the 0.9600 handle now becomes an immediate support to defend, which if broken decisively would turn the pair vulnerable to head back towards multi-month lows support near mid-0.9550s before eventually dropping to the key 0.95 psychological mark.