- USD / CHF struggled to capitalize on its modest initial gains to three-day highs.
- A dovish USD price action was seen as a key factor limiting the pair’s gains.
- The disappearance of the safe haven demand undermined the CHF and helped limit deeper losses.
The pair USD/CHF cut out Modest initial gains at three-day highs and now fell to the lower end of its daily trading range, around the 0.9140-35 region.
The pair added to the good bounce the day before of around 70 pips from the four-week lows and gained some traction during the first half of trading action on Wednesday. Signs of stability in equity markets undermined the safe-haven Swiss franc, which, in turn, was seen as a key driver driving USD / CHF higher.
However, a softer tone around the US dollar prevented the bulls from making aggressive bets and kept any wild rallies limited. As investors digest a setback in the development of a COVID-19 vaccine, dashed hopes for any new US fiscal stimulus and US political uncertainty kept USD bulls on the defensive.
Meanwhile, the slide remained muffled and the USD / CHF pair has, so far, managed to stay above the support of the 50-day SMA. This makes it prudent to wait for a strong follow-up sell before traders begin to position themselves for the resumption of the recent downward trajectory seen over the last two weeks or so.
Traders will follow the signals of the broader market risk sentiment to seize some significant trading opportunities.
Credits: Forex Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
