USD/CHF off lows, finds some support near 0.9700 handle

   •  A combination of factors keeps exerting downward pressure.
   •  Surging US bond yields help limit deeper losses, for the moment.

The USD/CHF pair seems to have stalled its bearish slide at the 0.9700 handle and has managed to rebound around 15-20 pips from 3-month lows. 

The pair extended Friday's bearish break below important moving averages (200 & 100-day SMA) confluence support and remained under some selling pressure for the fourth consecutive session. The US Dollar selling pressure was unabated on the first trading day of 2018 and has been one of the key factors weighing heavily on the major.

Adding to this, reviving safe-haven demand, amid the prevailing cautious sentiment around equity markets, provided an additional boost to the Swiss Franc and further collaborated to the pair's downfall to its lowest level since early October.

However, a sharp recovery in the US Treasury bond yields, to some extent, eased bearish pressure surrounding the greenback and helped the pair to defend the 0.9700 handle, at least for the time being.

Traders now look forward to the final US manufacturing PMI print for some short-term trading impetus. The key focus, however, would be on this week's important releases, including FOMC meeting minutes and NFP data, which would help determine the pair's next leg of directional move.

Technical levels to watch

Bulls might continue to try and defend the 0.9700 handle, which if broken might turn the pair vulnerable to extend its downward trajectory towards 0.9620 intermediate support en-route the 0.9600 handle.

On the upside, 0.9745-50 area now seems to act as an immediate resistance, above which a bout of short-covering could lift the pair towards 0.9785 confluence support break-point now turned strong resistance.