USD / CHF recovery attempts are locked at 0.9090 resistance area

• Attempts to rise the US dollar stall below 0.9100.
• The USD remains at recent levels despite strong risk aversion.
• USD / CHF fails to distance itself from multi-year lows at 0.9000.

The US dollar is attempting to rally from near multi-year lows of 0.9000 against the Swiss franc. The pair has recovered to the upper range of 0.9000 on Monday, although attempts to the upside are losing traction to break resistance at the 0.9090 / 0.9100 area.

US dollar appreciates on coronavirus concerns

The dollar is outperforming its main rivals on Monday fueled by strong risk aversion sentiment amid the global surge in COVID-19 infections. News reports from France and the US showing a record number of infections and Spain declaring the second state of emergency at this hearing have clouded the market sentiment, which has been reflected in a flight for safety that has boosted demand for the US dollar.

Optimistic reports on the progress of the Oxford / AstraZeneca vaccine, which has demonstrated a strong immune response in elderly patients, have failed to improve market confidence. European equity markets have closed with solid losses and the major Wall Street indices are recording more than 2% declines with investors shifting away from risk.

USD / CHF remains dangerously close to multi-year lows at 0.9000

From a technical perspective, the pair remains in a negative trend from late September highs at 0.9300, with immediate support at 0.9030 (October 21 low) before 0.9000 (September 1 low), below here, The pair would hit levels not seen since early 2015.

On the upside, the USD should break above 0.9090 (Oct 23 lows) to ease downward pressure and target the 50-day SMA, now at 0.9125 and then to mid-October highs at 0.9160.

Technical levels