USD/CHF steady above 0.9120 after bouncing up from 0.9075
|- USD/CHF steady above 0.9120 after bouncing up from 0.9075.
- The dollar appreciated across the board on upbeat US PMI figures.
- USD/CHF Below 0.8943, 2014 lows at 0.8703/0.8698 could be revisited – Commerzbank.
The US dollar has bounced up strongly from two-week lows at 0.9075 on the early US session, returning above 0.9100 after the release of upbeat US macroeconomic data. The pair has consolidated above 0.9120 after rejection from 0.9150
US dollar rallies after US PMI data
The greenback opened the week on the defensive, weighed by a risk-on sentiment after news of the promising results of AstraZeneca’s COVID-19 vaccine boosted market mood Beyond that, the widely expected monetary easing action from the Federal Reserve has contributed to weaken the USD.
Macroeconomic data offered a fresh boost to the US dollar, which had retreated to two-week lows at 0.9075. The preliminary US Markit PMI advanced a better-than-expected performance of US private sector activity which increased demand for the USD and pushed the pair to session highs near 0.9150.
USD/CHF: Breach of 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
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.