USD/CHF struggles to register any meaningful recovery from 5-month lows

The USD/CHF pair quickly reversed a dip to sub-0.9400 level, 5-month lows, but has failed to make much progress higher and was now seen oscillating in a range around the 0.9420 region.

A modest US Dollar recovery since the early European session helped eased the prevalent strong bearish pressure surrounding the major and stall the ongoing slide from early Jan. highs, beyond the 0.9800 handle to its lowest level since late August. 

Meanwhile, the prevalent cautious sentiment around global markets, further reinforced by weaker US Treasury bond yields, was seen underpinning the Swiss Franc's safe-haven appeal and capped any meaningful recovery move.

Hence, it would be prudent to wait for a strong follow-through buying interest before confirming that the pair might have bottomed out in the near-term.

On the economic data front, the release of new home sales figures from the US, which although is unlikely to be a major game changer, might provide some short-term trading impetus.

Technical levels to watch

Immediate resistance is pegged near the 0.9435-40 region and is closely followed by 0.9470 supply zone, above which the pair is likely move back towards reclaiming the key 0.95 psychological mark.

On the downside, sustained weakness below the 0.9400 handle would turn the pair vulnerable to head back towards testing the 0.9300 handle with some intermediate support near the 0.9355 region.