- The US dollar recovers lost ground and is back above parity.
- Fed tightening hopes and rising US yields underpin the dollar.
- USD/CHF is at the key resistance zone of 1.0065/75.
The USD is making a solid recovery against the Swiss franc this Wednesday. The pair EUR/USD it has regained all the ground lost in the previous two days and is testing levels above parity, having hit session highs at 1.0065.
Dollar, buoyed by a more sour mood in markets and Fed tightening hopes
The positive market mood of the past two days eased on Wednesday, increasing demand for the US dollar, thanks to its safe-haven status. European stock markets closed with moderate losses, while in the US, the Dow Jones dropped 0.5%, the S&P index lost 0.8% and the Nasdaq fell around 1%.
US Treasuries have also risen on Wednesday, with the benchmark 10-year yield trading above 4%. Market hopes that the Federal Reserve will aggressively raise interest rates again after the November meeting have boosted US yields, dragging the dollar with them.
USD/CHF hits a key resistance zone at 1.0065/75
The pair has reached a major resistance area at 1.0065/75 (Oct 13-14 highs) which, for the time being, continues to limit upside attempts. Confirmation above that level would put the pair at three-year highs, aiming to reach the May 20, 2019 high at 1.0120 before the April 25, 2019 high at 1.0225.
To the downside, initial support is found at 0.9920 (Oct 18 low and 100-period SMA on the 4hr chart) below here 0.9780 (Oct 4-6 lows) and 0.9740 (Oct 30 low). of September).
Technical levels to watch
Source: Fx Street
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