USD/CHF recovers swiftly to 0.9675 from a 5-week low level

The US Dollar seems to witness some buying interest at lower levels, with the USD/CHF pair attempting a minor recovery from a 5-week low level tested earlier during the session.

After a sharp slide on Friday in wake of a highly disappointing job numbers from the US, the Swiss Franc witnessed a follow through safe-haven flows on Monday and Tuesday, dragging the USD/CHF pair further below 0.9700 handle.

With a slight up-tick in the US Dollar, as measured by the US Dollar Index, the pair has managed to stage a tepid bounce from session through level of 0.9645 and has now recovered over 30-pips to currently trade around 0.9678.

Looking at the price action, the pair is rebounding from a near-term oversold condition as depicted by RSI reading below 30 on H1 and H4 chart. However, downward trending daily RSI reading has not yet dropped to oversold territory, indicating that the pair might resume its weakening trend after a brief pause.

Technical levels to watch

A turn below day's through support near 0.9645, now seems to open door for additional weakness towards the 0.9600 level and further towards 0.9550 support. On the upside, immediate resistance is now pegged near 0.9700 handle, above which the pair seems to extend its recovery momentum immediately towards 0.9755-60 horizontal resistance.