USD/CHF rebounds from 17-month lows, back around 0.9300 handle

   •  Surging US bond yields help revive USD demand.
   •  Oversold conditions prompt some short-covering.
   •  The keenly watched US jobs data holds the key.

Having refreshed 17-month lows, the USD/CHF pair staged a minor recovery and is now looking to move back above the 0.9300 handle.

The pair now seems to have snapped three consecutive days of losing streak and was now being supported by a modest pickup in the US Dollar demand. The ongoing upsurge in the US Treasury bonds, amid firming expectations over at least 3 Fed rate hikes in 2018, provided some immediate respite for the USD bulls and was seen as one of the key factors behind the pair's uptick.

Further gains, however, remained capped on the back of prevailing risk-off environment across European equity markets, which was seen lending some support to the Swiss Franc's safe-haven appeal.

Meanwhile, the rebound looked more like a technical bounce from near-term oversold conditions and lacked any strong conviction. Hence, it would be prudent to wait for strong buying interest before confirming that a near-term bottom is already in place. 

Moving ahead, the keenly watched US monthly jobs report, popularly known as NFP, will grab all the spotlight on Friday and help provide some fresh directional impetus later during the early NA session.

Technical levels to watch

Sustained move beyond the 0.9300 handle is likely to get extended further towards 0.9335-40 supply zone, which if cleared might trigger a short-covering bounce back towards reclaiming the 0.9400 handle.

On the flip side, the 0.9260-55 region now seems to have emerged as an immediate support, below which the pair is likely to accelerate the slide towards 0.9220-15 area en-route the 0.9200 handle.