Swiss Franc: Further gains possible against US Dollar - UOB

FXStreet Insights Team FXStreet

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann report that USD/CHF slid to 0.8124 before rebounding to 0.8168, with intraday price action expected to consolidate between 0.8125 and 0.8185. On a one-to-three-week horizon, they still see scope for a test of 0.8110 provided 0.8205 strong resistance holds, even though the latest rebound has slowed immediate downside momentum.

Consolidation but risk still lower

"24-HOUR VIEW: USD dropped sharply to a low of 0.8148 two days ago. Yesterday, we indicated that USD “could break below 0.8140.” However, we pointed out that “it is unclear whether it can maintain a foothold below this level.” We also highlighted that “it is also premature to expect 0.8110 to come into view.” We were not wrong, as USD fell to a low of 0.8124 before rebounding to close at 0.8168 (-0.46%). Downward momentum has slowed with the rebound, and USD is unlikely to weaken further. Today, we expect USD to consolidate, most likely between 0.8125 and 0.8185."

"1-3 WEEKS VIEW: Tracking our negative USD view from late last week, we highlighted yesterday that USD “must break and hold below 0.8140 before further declines can be expected.” We added, “the next level to watch below 0.8140 is 0.8110.” USD subsequently broke below 0.8140 but it rebounded to close at 0.8168 (-0.46%). Although USD did not close below 0.8140, given the sharp decline to 0.8124, there is a chance for USD to test 0.8110 before the risk of a recovery increases. On the upside, a breach of 0.8205 (‘strong resistance’ was at 0.8220 yesterday) would mean that 0.8110 is not coming into view."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD consolidates near 0.7000 as USD stays weak

AUD/USD holds steady above 0.7000 during Thursday’s Asian session, consolidating the previous day’s recovery gains from a near three-week low as the Democratic sweep in the US midterm elections and Iran diplomacy hopes continue to weigh on the US Dollar. Bulls, however, seem hesitant as focus shifts to Friday’s crucial US NFP report.

USD/JPY drifts lower to 158.25 on hawkish BoJ Minutes, weak USD

USD/JPY trades with a negative bias for the second straight day on Thursday as hawkish BoJ Minutes, showing members agreed to keep raising rates, and intervention risks support the Japanese Yen. Meanwhile, US midterm election results and hopes for Iran diplomacy keep the US Dollar depressed as focus shifts to Friday’s US NFP report.

Gold trims gains, returns to $4,100

Gold now surrenders part of its initial bull run and appears on its way to challenge the key $4,100 region per troy ounce on Thursday. The precious metal extends it recovery on the back of the tepid advance in the Greenback and mixed US Treasury yields following the US midterm elections.

TRUMP token hits record low amid mounting selling pressure

Ripple and Stellar extend their recovery as bearish pressure begins to ease for both altcoins. XRP trades above $1.30 after breaking above the upper trendline of a falling channel pattern, while XLM holds above $0.168 and approaches resistance at $0.173. Meanwhile, improving derivatives metrics and strengthening momentum indicators hint at a potential for further recovery.

NFP stress test: Six payrolls releases, measured in daily-loss limits

Friday's US employment report is usually previewed in terms of the headline number and the reaction in the Dollar. For a growing group of traders, those running funded or evaluation accounts with a fixed daily loss limit, there is a more practical question: how much of that limit can the first hour consume, regardless of direction?

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.