USD/CHF rebounds above 0.99 on recovering sentiment


  • Trump administration officials reportedly considered interim deal with China.
  • Wall Street stays in positive territory on Thursday.
  • US Dollar Index stays in red near 98.50.

The USD/CHF pair rose to a daily high of 0.9950 during the early trading hours of the American session as the heavy selling pressure surrounding the EUR allowed the Greenback to find demand. However, the pair struggled to preserve its momentum and slumped to a session low of 0.9883 before staging a modest recovery. At the moment, the pair was still down 0.15% on the day at 0.9910.

Volatility rises on ECB announcements

Earlier today, the European Central Bank announced that it cut the deposit facility rate by 10 basis points to -0.5% and introduced a new quantitative easing program at a monthly pace of €20 billion as from 1 November. The initial market reaction caused the shared currency to weaken against its major rivals and boosted the US Dollar Index (DXY). 

Later in the day, the DXY, which advanced to a 9-day high of 99.10, lost its traction as markets started to price in an aggressive policy move by the Federal Reserve next week following the ECB's policy decisions. At the moment, the index is down 0.17% on the day at 98.46.

Meanwhile, a Bloomberg report claiming that US President Donald Trump's advisers considered the option of offering China an interim trade deal to secure agricultural purchases and commitments on IP from China in exchange for delaying or even rolling back tariffs allowed risk-on flows to start dominating the market action and weighed on the safe-haven CHF. Although a senior White House official denied the report, the upbeat sentiment seems to be intact with major equity indexes in the US posting gains on the day.

Technical levels to watch for

USD/CHF

Overview
Today last price 0.991
Today Daily Change -0.0017
Today Daily Change % -0.17
Today daily open 0.9927
 
Trends
Daily SMA20 0.9841
Daily SMA50 0.9842
Daily SMA100 0.9925
Daily SMA200 0.995
Levels
Previous Daily High 0.9944
Previous Daily Low 0.9911
Previous Weekly High 0.993
Previous Weekly Low 0.9797
Previous Monthly High 0.9976
Previous Monthly Low 0.9659
Daily Fibonacci 38.2% 0.9931
Daily Fibonacci 61.8% 0.9924
Daily Pivot Point S1 0.9911
Daily Pivot Point S2 0.9894
Daily Pivot Point S3 0.9878
Daily Pivot Point R1 0.9944
Daily Pivot Point R2 0.996
Daily Pivot Point R3 0.9977

 

 

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