USD / CHF cuts Tuesday’s gains, falls to 0.9110

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  • The US dollar is down across the board, losses limited by risk aversion.
  • The USD / CHF maintains a bearish bias, remains limited by the 0.9150 zone.

He USD/CHF it fell further back from the five-day high it hit on Wednesday at 0.9162 and bottomed at 0.9112. At time of writing, it is trading at 0.9125, still maintaining a bearish tone.

A weaker US dollar pushed the pair lower. The DXY fell to 93.20, cutting Tuesday’s gains. In the last few minutes he regained some strength amid risk aversion.

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Stock prices on Wall Street took a decisive turn lower following comments from US Treasury Secretary Mnuchin on the stimulus talks. Previously, the dollar and markets were moving sideways without a clear trend.

Turning to US data, the Producer Price Index (PPI) rose 0.4% in September, beating market expectations for a 0.2% increase. The weekly unemployment claims report will be released on Thursday. Market participants continue to focus on stimulus talks, Brexit negotiations, and US politics.

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From a technical perspective, the USD / CHF improvement seen on Tuesday was short-lived. The dollar needs to rise and stay above 0.9160 (horizontal resistance and downtrend line) to clear the way for a more significant recovery. The bearish bias still prevails. A drop below 0.9085 (October low) would likely lead to a test of 0.9050.

 

Credits: Forex Street

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