untitled design

USD / CHF rejected at 0.9125, returns to levels below 0.9100

  • US dollar upside attempt fails at 0.9125, retreats below 0.9100.
  • The dollar remains positive, supported by safe haven demand.
  • USD / CHF: Holding near multi-year lows at 0.9000– Credit Suisse.

The USD bullish reaction from the 0.9090 area seen earlier on Wednesday has been capped at 0.9125 and the pair has lost most of the ground taken on the day, retreating to just below 0.9100.

The US dollar remains positive on the demand for safe haven

The dollar appreciated for the third day in a row on Wednesday, fueled by strong risk-off sentiment. The rising number of infections in the US and Europe and news reports of possible closures in France and Germany have spooked investors, concerned about the economic impact of these measures.

Additionally, uncertainty over the US elections, with the gap between frontrunner Biden and Donald Trump narrowing, is helping to curb the appetite for risk. Investors are increasingly wary of anticipating price shocks in the event of a contested election.

USD / CHF: Multi-year lows at 0.9000 still in focus – Credit Suisse

From a technical perspective, Credit Suisse’s currency strategy team remains cautious of a bearish move towards 0.9000: “A clear break below 0.9049 / 37 would further reinforce our bearish bias and open a move back to the year low. current and to the psychological inflection point at 0.9000 / 8999, which we also believe will eventually break out in the medium term. The next major support below is seen at the 50% retracement of the entire 2015/17 bull move at 0.8875 “.

Credits: Forex Street

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular