USD/CHF retreats below 0.9500 as the dollar loses strength

USD/CHF recovery from 0.9460 has been capped at 0.9522.
The dollar loses ground as market sentiment improves with equities resuming their bullish trend.
The pair is going through a correction higher ahead of further losses – Commerzbank.

Guillermo Alcala FXStreet

US dollar's rebound from session lows at 0.9460 has been capped at 0.9520 and the pair retreated below 0.9500 as market sentiment improved with equity markets resuming their upward trend.

The dollar loses steam as market sentiment improves

The greenback bounced up across the board earlier during the US session on reports pointing out to an increase of COVID-19 cases in several US states and a new outbreak in Beijing that has forced local authorities to restrict travel.

Furthermore, the negative tone of US Federal Reserve chairman, Jerome Powell’s comments regarding the post-coronavirus recovery increased risk aversion, boosting the safe-haven dollar against its main rivals.

The pair however has been capped below recent highs, with the USD trimming gains as the market digests the news and equity markets resume their initial bullish trend, supported by upbeat US retail sales and industrial production figures.

USD/CHF: correction higher ahead of further losses – Commerzbank

Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank sees the USD upside move as a corrective reaction ahead of further decline, “USD/CHF charted a hammer reversal on Thursday and is seeing a correction higher ahead of further losses. Rallies from here will see initial resistance 0.9580, 0.9650, but the market will remain directly offered while capped by the short-term downtrend at 0.9697.”

USD/CHF key levels to watch

USD/CHF

Overview
Today last price	0.95
Today Daily Change	0.0009
Today Daily Change %	0.09
Today daily open	0.9491

Trends
Daily SMA20	0.9605
Daily SMA50	0.9662
Daily SMA100	0.9669
Daily SMA200	0.9765

Levels
Previous Daily High	0.9547
Previous Daily Low	0.948
Previous Weekly High	0.9639
Previous Weekly Low	0.9376
Previous Monthly High	0.9784
Previous Monthly Low	0.9589
Daily Fibonacci 38.2%	0.9506
Daily Fibonacci 61.8%	0.9521
Daily Pivot Point S1	0.9465
Daily Pivot Point S2	0.9439
Daily Pivot Point S3	0.9398
Daily Pivot Point R1	0.9532
Daily Pivot Point R2	0.9573
Daily Pivot Point R3	0.9599

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.

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