USD/CHF eases from tops, still in the green around 0.9065-70 region
|- USD/CHF gained positive traction on Friday and snapped three days of losing streak.
- COVID-19 vaccine optimism weighed on the safe-haven CHF and remained supportive.
- Weaker USD kept a lid on any meaningful gains, warranting caution for bullish traders.
The USD/CHF pair held on to its positive tone through the early North American session, albeit retreated around 10-15 pips from the 0.9080 region, or daily tops touched in the last hour.
The pair managed to find some support near mid-0.9000s and staged a modest recovery from three-week lows on the last day of the week. The uptick assisted the USD/CHF pair to snap three consecutive days of the losing streak and was being supported by the prevalent upbeat market mood.
The global risk sentiment remained well supported by the recent optimism over the development of a potential vaccine for the highly contagious coronavirus disease. This was evident from an uptick in the equity markets, which undermined demand for the safe-haven Swiss franc.
However, the prevalent selling bias surrounding the US dollar kept a lid on any meaningful recovery for the USD/CHF pair. Concerns about the economic fallout from new COVID-19 restrictions in several US states revived hopes for more stimulus from the incoming Biden administration.
This, along with a fresh leg down in the US Treasury bond yields, kept the USD bulls on the defensive through the major part of the trading action on Friday. This makes it prudent to wait for some follow-through buying before positioning for any further appreciating move.
There isn't any major market-moving economic data due for release from the US. Hence, the broader market risk sentiment, along with USD price dynamics will continue to influence the USD/CHF pair and assist traders to grab some meaningful opportunities.
Technical levels to watch
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