USD/CHF clings to recovery gains, bulls await move beyond 0.9400 handle

   •  A modest USD rebound helps gain some positive traction. 
   •  Fading safe-haven demand provides an additional boost.
   •  US ISM PMI/Fedspeak eyed for some fresh impetus.

The USD/CHF pair held on to a mildly positive tone through the early NA session, albeit struggled to move back above the 0.9400 handle. 

The pair opened with a weekly bearish gap and dropped to an intraday low level of 0.9346 on the back of some follow-through US Dollar selling, led by fears of a global trade war. The USD selling now seems to have abated, at least for the time being and helped the pair to stage a goodish rebound. 

This coupled with a goodish rebound in European equity markets, which tends to weigh on the Swiss Franc's safe-haven appeal, provided an additional boost to the pair's modest uptick. 

Bulls, however, seemed lacking conviction and the pair remained capped below the 0.9400 handle amid weaker tone surrounding the US Treasury bond yields. Hence, it would be prudent to wait for a strong follow-through buying interest before committing to any additional near-term up-move.

Later during the NA session, the release of US ISM non-manufacturing PMI along with the Fed Governor Randal Quarles' speech would now be looked upon for some fresh impetus. 

Technical levels to watch

A convincing move beyond the 0.9400 handle is likely to accelerate the recovery move towards 0.9445 level en-route last week’s swing high resistance near the 0.9490 region. On the flip side, mid-0.9300s now seems to act as immediate support, which if broken might turn the pair vulnerable to head back towards challenging the 0.9300 handle.