USD/CHF is taking a rest bite from the relentless downside run from the mid 0.93 handle, consolidating at weekly lows and a critical support area. At the time of writing, the pair is trading at 0.9203 within a range of between 0.9166 and 0.9230. The start of the week has followed on from a busy close where a change in tides in the G10 market has seen consistent losses in the US dollar. Speculators grew more bearish about the US dollar, increasing their short positions in the currency, according to calculations by Reuters and US Commodity Futures Trading Commission data released on Friday. US dollar positioning was derived from net contracts of International Monetary Market speculators in the Japanese yen, euro, British pound and Swiss franc, as well as the Canadian and Australian dollars. Consequently, Friday marked the fourth consecutive week in which the dollar index DXY has fallen as the dollar loses its afe-haven appeal. The Federal Reserve’s intervention into financial markets in the United States has propped up risk assets, tamping down demand for safe-havens which is where we have seen a continuation in the recovery on Wall Street. EUR longs blast high Despite a pickup in coronavirus infections this week, the DXY is expected to continue to fall, pressured by a stronger EUR/USD. The sell-off in the USD appears to have underpinned the safe-haven CHF. The euro is supported last week by news on the EU’s Recovery Fund. Net longs have now reached their highest level since April 2018. Meanwhile, concerns about a second wave of Covid-19 in addition to China-related tensions will likely see flows continue to support safe-haven currencies, such as the yen and CHF. Given that the safe-haven CHF can be sensitive to political uncertainty within the Eurozone, the recent cohesion between EU leaders serves to support a more bullish outlook for the currency. USD/CHF levels In the above chart, the price has reached a critical support zone leaving a bullish doji with an upside retracement target to the 61.8% Fibonacci. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next US: Republican Senator Collins to vote against Judy Shelton’s nomination to FOMC FX Street 3 years USD/CHF is taking a rest bite from the relentless downside run from the mid 0.93 handle, consolidating at weekly lows and a critical support area. At the time of writing, the pair is trading at 0.9203 within a range of between 0.9166 and 0.9230. The start of the week has followed on from a busy close where a change in tides in the G10 market has seen consistent losses in the US dollar. Speculators grew more bearish about the US dollar, increasing their short positions in the currency, according to calculations by Reuters and US Commodity Futures Trading Commission data released on… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
