Home USD/CHF trading practically flat between 0.9100 and 0.9130
FXStreet News

USD/CHF trading practically flat between 0.9100 and 0.9130

  • The US dollar remains capped below 0.9130.
  • The Swiss franc remains weighed amid investors’ appetite for risk.
  • USD/CHF: Ibelow 0.8943, 2014 lows at 0.8703/0.8698 will come into focus – Commerzbank.

The US dollar has remained trapped within a tight range above 0.9100 on Tuesday. Dollar’s upside attempt seen on the European trading session has been capped below 0.9130, and the pair retreated again to 0.9120, little changed on the day.

The upbeat market mood weighs on the CHF

The positive sentiment generated on Monday after the pharmaceutical giant AstraZeneca revealed that its COVID-19 vaccine is 90% effective has extended into Tuesday’s trading. Beyond that, US President Trump is showing signals of acknowledging Biden’s victory, which has contributed to maintaining the upbeat market mood.

Investors’ optimism has reflected on higher equity markets and increasing US T-Bond yields that have favoured the USD against the safe-haven Swiss franc. European indexes have closed with advances between 1.4% and 2%, while in Wall Street, the S&P 500 Index adds 1.5%, while the Dow Jones and the Nasdaq Indexes trade 1.43% and 1.25% up respectively.

USD/CHF: Failure at 0.8943 would expose 2014 lows at 0.8703/0.8698 – Commerzbank

From a technical perspective, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, sees the pair neutral to negative while below 0.9162: The pair has recently reversed from 0.8983, however, this has not overcome any resistance of note and attention has reverted back to this low (…) The recent low at 0.8983 guards 0.8943 (TD support) (…) Failure at 0.8943 is needed to introduce scope to the 0.8703/.8698 2014 lows.”

Technical levels to watch

 

 

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.