US dollar upside attempt fails at 0.9125, pulls back below 0.9100. The dollar remains positive, supported by safe-haven demand. USD/CHF: remains close to multi-year lows at 0.9000– Credit Suisse.
US dollar’s bullish reaction from 0.9090 area seen earlier on Wednesday has been capped 0.9125 and the pair has given away most of the ground taken on the day, retreating to levels right below 0.9100
US Dollar remains positive on safe-haven demand
The greenback appreciated for the third consecutive day on Wednesday, fuelled by a strong risk-averse sentiment. The surging number of infections in the US and Europe and news reports about possible lockdowns in France and Germany have spooked investors, concerned about the economic impact of these measures.
Furthermore, the uncertainty about the US elections, with the gap between the favourite Biden and Donald Trump has been tightening is contributing to dampen appetite for risk. Investors are increasingly cautious in prevision of sharp price movements in case of a disputed election.
USD/CHF: multi-year lows at 0.9000 is still on focus – Credit Suisse
From a technical perspective, The FX strategy team at Credit Suisse remain wary of a bearish move towards 0.9000: “A clear break below 0.9049/37 would further reinforce our bearish bias and open up a move back to the current year low and psychological inflexion point at 0.9000/8999, which we also think will be eventually broken over the medium-term. The next major support below here is seen at the 50% retracement of the entire 2015/17 upmove at 0.8875.”
