USD/CHF struggles to stage a rebound, stays in red near 0.8870
|- USD/CHF is falling for third straight day on Tuesday.
- US Dollar Index tests 90.00 ahead of American session.
- Wall Street looks to build on Monday's gains.
The USD/CHF closed in the negative territory for the second straight trading day on Monday and extended its slide during the European trading hours on Tuesday. After touching its lowest level in a week at 0.8848, the pair seems to have gone into a consolidation phase and was last seen losing 0.2% on the day at 0.8865.
Investors continue to sell USD ahead of New Year holiday
The broad-based USD weakness is causing USD/CHF to push lower. The US Dollar Index (DXY) is testing 90.00 ahead of the American session and down 0.36% on a daily basis.
The strong performance of major global equity indexes makes it difficult for the greenback to find demand as a safe-haven. Wall Street's main indexes climbed to new all-time highs on Monday after US President Donald Trump signed the coronavirus relief bill into law late Sunday.
Moreover, the EU-UK trade deal and the vaccine rollout provide a boost to investor optimism heading into 2021.
There won't be any macroeconomic data releases from the US and the DXY is unlikely to stage a rebound as US stocks remain on track to notch fresh record tops at the opening bell.
Technical levels to watch for
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