USD/CHF rebounds to 0.9950 area on improving risk sentiment


  • Risk-on flows dominate the market action in the American session.
  • 10-year United States (US) Treasury bond yield gains nearly 4%.
  • US Dollar Index struggles to recover its losses.

The broad-based selling pressure surrounding the Greenback dragged the USD/CHF pair toward the 99 area during the European trading hours. However, with the market sentiment recovering in the last hours, the pair erased its daily losses and was last seen trading at 0.9955, where it was virtually unchanged on a daily basis.

Markets continue to react to US-China trade developments

While market participants are waiting for the headlines that will come out of the high-level trade negotiations between the United States (US) and China in Washington, some recent developments revived the optimism and caused safe-haven assets to lose interest.

An official from the US Chamber of Commerce in the last hour said there was a possibility of a currency agreement in the US-China trade talks in exchange for a delay in tariff hikes. Additionally, Chinese Vice Premier Liu He repeated that China was willing to reach an agreement "on matters that both sides care about."

Reflecting the upbeat market mood, the 10-year US Treasury bond yield rose sharply and was last up 3.7% on the day. 

On the other hand, the US Dollar Index struggled to stage a recovery despite the fact that the US Bureau of Labor Statistics' inflation report showed that the core Consumer Price Index (CPI) in September stayed unchanged at 2.4% as expected. At the moment, the index is down 0.34% on the day, not allowing the pair to push higher.

Technical levels to watch for

USD/CHF

Overview
Today last price 0.9954
Today Daily Change -0.0005
Today Daily Change % -0.05
Today daily open 0.9959
 
Trends
Daily SMA20 0.9933
Daily SMA50 0.9862
Daily SMA100 0.9883
Daily SMA200 0.9952
 
Levels
Previous Daily High 0.9964
Previous Daily Low 0.9915
Previous Weekly High 1.0028
Previous Weekly Low 0.9904
Previous Monthly High 0.9988
Previous Monthly Low 0.9797
Daily Fibonacci 38.2% 0.9945
Daily Fibonacci 61.8% 0.9934
Daily Pivot Point S1 0.9928
Daily Pivot Point S2 0.9897
Daily Pivot Point S3 0.9879
Daily Pivot Point R1 0.9977
Daily Pivot Point R2 0.9995
Daily Pivot Point R3 1.0026

 

 

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