USD/CHF loses steam after rejection at 0.9130 resistance
|- USD/CHF recovery hits resistance at 0.9130 and retreats to 0.9110 area
- The dollar pares losses and remains barely changed on the day.
- Speculation about Fed monetary easing in December is weighing on USD longs.
US dollar’s bullish reversal from 0.9105 area witnessed during the early European session on Thursday has been capped at 0.9130 and the pair retreated to 0.9110 area, to show little change on the daily chart.
USD puts an end to a five-day decline
The greenback has appreciated on Thursday, to halt a five-day losing streak with risk appetite vanishing as COVID-19 cases continue increasing. The moderate optimism about the progress on several vaccine projects has been crushed after the US announced that its coronavirus death toll has reached 250.000 and the New York City authorities decided to close schools in an attempt to curb the surge of infections.
The US Dollar Index appreciated about 0.3% on the European trading hours to pull back and turn negative during the US session. The worsening coronavirus pandemic in the US has prompted investors to anticipate further Fed easing at December’s meeting, which is weighing on USD long bets.
On the macroeconomic domain, US Weekly Jobless Claims increased beyond expectations in the week of November 13, posting 742,000 new claims against the market consensus of 707,000. The impact of this event on the US dollar, however, has been muted.
Technical levels to watch
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