USD/CHF pares modest intraday recovery gains, up a little around 0.9500 mark

• USD/CHF stages an intraday bounce from a multi-month low amid a modest USD uptick.
• A combination of factors holds back bulls from positioning for any meaningful recovery.
• Traders look forward to the US JOLTS Job Openings data for short-term opportunities.

The USD/CHF pair stages a goodish intraday bounce from the 0.9470 area, or its lowest level since April touched earlier this Tuesday and snaps a five-day losing streak. The pair, however, trims a part of its recovery gains and retreats to the 0.9500 mark during the first half of the European session.

A modest US dollar recovery from a four-week low set this Tuesday turns out to be a key factor offering support to the USD/CHF pair. That said, a combination of factors is holding back bullish traders from positioning from any meaningful upside and capping the upside for spot prices, at least for now.

Growing recession fears, along with mounting diplomatic tensions ahead of the planned Taiwan visit by US House Speaker Nancy Pelosi, continue to weigh on investors' sentiment. This is evident from a softer tone around the equity markets, which, in turn, extends support to the safe-haven Swiss franc.

The anti-risk flow, along with expectations that the Fed would not hike interest rates as aggressively as estimated, exerts some follow-through pressure on the US Treasury bond yields lower. This seems to act as a headwind for the greenback and further contribute to capping gains for the USD/CHF pair.

Hence, it would be prudent to wait for strong follow-through buying before confirming that the USD/CHF pair has formed a near-term bottom and positioning for any meaningful recovery. Traders now look forward to the JOLTS Job Openings data for some impetus later during the early North American session.

Technical levels to watch