USD/CHF hesitates at 0.8765 and keeps its broader bearish trend intact
- The Dollar threads water with the CHF favoured by the negative risk sentiment.
- The near-term bias remains negative while below 0.8770.
- A reversal below 0.8660 would lure bears into the 0.8555 long-term low.
US Dollar’s recovery attempt from Monday’s lows at 0.8665 is meeting strong resistance at the upper range of 0.8700. This leaves the pair wavering right about 0.8700, with the bearish trend from early November highs intact.
The risk-off mood supporters the Swiss Franc
Risk-averse market sentiment on Tuesday’s European session has offset the impact of the weak Swiss CPI reading seen on Monday. This sourer mood is favouring the safe-haven Swiss Franc, and keeping US Dollar bulls in check.
In the US, Factory orders data sewn on Monday confirmed that US economic growth is cooling in the fourth quarter of the year. This and the softer inflation figures are feeding hopes that the Fed is done with hikes, which is weighing on the USD.
Today, the US ISM Services PMI and the JOLTS job openings will provide some more insight into the US economic outlook although the highlight of the week will be Friday’s Nonfarm Payrolls report.
USD/CHF remains biased lower while below 0.8770
From a wider perspective, the pair remains looking vulnerable printing lower highs and lower lows. Resistance at 0.8770 is the nearest peak that should be breached to confirm a trend change and advance towards 0.8820 and 0.8880 levels.
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.
