• US dollar resumes its near-term downtrend and approaches two-month lows at 0.9030.
  • The dollar loses ground with stock markets rallying.
  • USD/CHF: Below 0.9048, next target is 0.8998 – Commerzbank.

The dollar has resumed its downtrend against the Swiss franc on Thursday, breaking below the 0.9100 level to reach session lows dangerously close to the last two-months’ low, at 0.9030.

US dollar tumbles on risk appetite

The greenback has depreciated about 0.8% so far today amid a broad-based USD weakness with equity markets surging as Democrat Joe Biden takes the lead on the US elections’ vote count. The perspective of a Democrat government with the Senate controlled by the Republicans to block attempts to introduce tighter regulations or raise taxes has boosted investors optimism.

Furthermore, the Federal Reserve, which has kept interest rates and the bond-buying program unchanged, as expected, has added a slight negative pressure on the USD. Fed Chair Jerome Powell’s has warned that the pace of improvement has moderated and that the path ahead is uncertain, which might have been considered as tilted to the dovish side.

USD/CHF to target recent low at 0.8998 on a slump below 0.9048 – Commerzbank

On the technical front, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, warns that a clear breach of 0.9048 might accelerate the downtrend:  “Attention on the 0.9048 mid-September low. Only a slide below 0.9048 will target the 0.8998 recent low. The recent low at 0.8998 guards 0.8943 (TD support). Failure at 0.8943 is needed to introduce scope to the 0.8703/0.8698 2014 lows.” 

Technical levels to watch

USD/CHF

Overview
Today last price 0.904
Today Daily Change -0.0085
Today Daily Change % -0.93
Today daily open 0.9125
 
Trends
Daily SMA20 0.9116
Daily SMA50 0.9134
Daily SMA100 0.9208
Daily SMA200 0.9436
 
Levels
Previous Daily High 0.9197
Previous Daily Low 0.909
Previous Weekly High 0.9173
Previous Weekly Low 0.9041
Previous Monthly High 0.9219
Previous Monthly Low 0.9031
Daily Fibonacci 38.2% 0.9131
Daily Fibonacci 61.8% 0.9156
Daily Pivot Point S1 0.9077
Daily Pivot Point S2 0.903
Daily Pivot Point S3 0.897
Daily Pivot Point R1 0.9184
Daily Pivot Point R2 0.9244
Daily Pivot Point R3 0.9291

 

 

 

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