- The US dollar remains capped below 0.9130.
- The Swiss franc remains heavy amid investors’ risk appetite.
- USD / CHF: Below 0.8943, 2014 lows at 0.8703 / 0.8698 will come into focus – Commerzbank.
The U.S. dollar it has remained trapped within a tight range above 0.9100 on Tuesday. The dollar upside attempt seen in the European trading session has been capped below 0.9130, and the pair fell back to 0.9120, little changed on the day.
Market optimism weighs on CHF
The positive sentiment generated Monday after pharmaceutical giant AstraZeneca revealed that its COVID-19 vaccine is 90% effective has spread through operations Tuesday. Beyond that, US President Trump is showing signs of appreciation for Biden’s victory, which has helped keep the market optimistic.
Investor optimism has been reflected in rising equity markets and rising US Treasury yields that have favored the US dollar against the safe-haven Swiss franc. The European indices have closed with advances between 1.4% and 2%, while on Wall Street, the S&P 500 index adds 1.5%, the Dow Jones and Nasdaq indices rise 1.43% and 1.25%, respectively.
USD / CHF: A failure to break above 0.8943 would expose 2014 lows at 0.8703 / 0.8698 – Commerzbank
From a technical perspective, Karen Jones, head of the FICC technical analysis research team at Commerzbank, sees the pair from neutral to negative while below 0.9162 – the pair has recently reversed from 0.8983, however this has not passed no notable resistance and attention has reverted to this low (…) Recent low at 0.8983 saves 0.8943 (TD support) (…) A failure at 0.8943 is needed to reach the 2014 lows of 0.8703 / .8698 ” .
Technical levels
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