USD/CHF stages a goodish recovery from over 1-month lows, NFP eyed

The USD/CHF pair recovered part of yesterday's lost ground and staged a goodish recovery from over one-month lows, now eying a move beyond the 0.9900 handle.

Having repeated failed to sustain it recovery move beyond the very important 200-day SMA, the pair on Thursday finally broke below nearly two-week old trading range and tumbled below the 0.9900 handle to its lowest level since late March. Yesterday's downfall was led by a sharp US Dollar sell-off, primarily led by a sharp up-surge in the EUR/USD major despite of surging US treasury bond yields on growing prospects for an eventual Fed rate-hike action in June. 

Spot seems to have regained some traction on Friday and could be attributed to a modest greenback recovery that prompted traders to unwind their bearish bets. It, however, remains to be seen if the pair is able to build on to its recovery move or runs through fresh support near the trading range support break-point, now turned resistance, near the 0.9900 handle. 

Today's monthly US jobs report, popularly known as NFP, would now be the next big fundamental trigger that would help investors to determine the next of directional move for the pair. 

   •  US NFP Preview: 6 major banks expectations from April month’s employment report

Technical levels to watch

A follow through recovery beyond the 0.9900 handle, leading to momentum above 0.9915-20 zone, is likely to get extended back towards 200-day SMA hurdle near mid-0.9900s. On the flip side, 0.9860 level now becomes immediate support to defend, which if broken is likely to accelerate the slide towards an intermediate support near 0.9830 level ahead of 0.9815-10 area (March 27 low).