- The dollar’s attempts to rebound from 0.9800 have found resistance at 0.9780.
- The market has turned cautious pending the results of the US elections.
- USDCHF is under increasing bearish pressure — Credit Suisse.
The US dollar is attempting to establish a bottom at 0.9800, following a 2.7% sell-off in the previous three days, although the pair has been unable to break above the previous 0.9870 resistance zone. On the daily chart, USDCHF remains mostly sideways, trading at 0.9850 at the time of writing.
Investors are watching the US CPI and the mid-term elections
Market sentiment has turned cautious on Wednesday as investors await the outcome of the US mid-term elections. The latest news has shown better-than-expected results for the Democrats, although control of the US Congress and the government’s agenda remain up in the air.
On the macro front, in the absence of key releases, the focus is on Thursday’s US Consumer Price Index figures. The growing speculation about a possible dovish pivot from the Federal Reserve has fueled interest in these figures and therefore an unexpected reading could lead to a significant increase in dollar volatility.
USD/CHF is under increasing downward pressure — Credit Suisse
Looking at a broader perspective, Credit Suisse’s FX analysts see the pair under increasing negative pressure: “We think downward pressure is building. Key support is found at the 55-day moving average and the recent low of 0.9840/38, a close below which would trigger a bearish ‘double top’ and likely clear the way to 0.9737 and potentially the 200-day moving average at 0.9616”.
Technical levels to watch
Source: Fx Street
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