USD/CHF extends losses to fresh two-week lows at 0.9060
- US dollar keeps heading south and reaches 0.9060 lows.
- Dovish Fed and risk aversion weigh the dollar against the Swiss franc.
- USD/CHF: Attention remains on the 0,.8983 low– Commerzbank.
The US dollar has continued its downtrend against the Swiss franc for the third consecutive day, extending its reversal from 0.9150 highs last week to the mid-range of 0.9000 so far.
The USD ticks lewer after the dovish Fed minutes
The Federal Reserve offered fresh reasons to short the USD on Wednesday. The minutes of their last meeting confirmed the market’s assumption that further monetary easing is likely to be introduced at December’s meeting and sent the dollar down to fresh two-month lows against a basket of the most traded currencies.
The pair has remained on the defensive on a thin trading session on Thursday with the CHF buoyed amid a moderate risk aversion. The surging COVID-19 cases and the prospects of long-lasting lockdowns in most of the world’s major economies have offset the enthusiasm about the progress on vaccine developments.
USD/CHF: The focus remains on the 0.8983 low – Commerzbank
From a technical perspective, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, sees the USD neutral to negative and points out to key support at 0.8983: “Attention remains on 0.8983, the recent low. This 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
Author
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
