- A modest rebound in the USD helped the USD / CHF to rebound from the two-week lows.
- The revival in safe haven demand could benefit the CHF and limit any further hikes.
- Diluted liquidity during the holidays could prevent traders from placing aggressive bets.
The pair USD/CHF It built on its intraday bounce from lows of more than two weeks and climbed to new session highs in the last hour, with the bulls now looking to regain the 0.9100 level.
The pair managed to find some support near the 0.9065 area and, for now, it appears to have stalled its recent decline from near 0.9200. The US dollar experienced a modest recovery from the lowest level in more than two months and was seen as one of the key factors behind the intraday movement of the USD / CHF pair.
Meanwhile, the market seemed to have assimilated optimism about a possible COVID-19 vaccine. This, in turn, led investors to take some gains off the table following the recent strong bullish rally in equity markets, which extended some support to the safe-haven status of the Swiss franc and could limit the pair’s rise. USD / CHF. .
In addition, the USD rally lacked an obvious fundamental catalyst and risks fading rather quickly amid weaker liquidity conditions due to the holidays. US markets are closed on Thursdays in celebration of Thanksgiving. This makes it prudent to wait for a few subsequent purchases before positioning for any further appreciation moves.
Therefore, any subsequent strength towards the 0.9115 area is more likely to be viewed as a selling opportunity and remains limited near the 0.9140-50 offer zone. That said, a sustained strength beyond could trigger some short-term short-term hedging move and help the USD / CHF pair to point back to regain the 0.9200 level.
Technical levels
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