• US Dollar Index erases daily recovery gains ahead of American session.
  • European equity indexes stay in the negative territory.
  • Coming up: Building Permits, Housing Starts and Industrial Production data from US.

The USD/CHF lost its traction in the last couple of hours and retraced its daily recovery gains pressured by the sour market mood and the broad USD weakness. As of writing, the pair was down 0.02% on the day at 0.9818.

The USD recovery during the early trading hours of the European session allowed the pair to stretch higher toward the 0.9850 area. The US Dollar Index, which tracks the greenback's value against a basket of six major currencies, rose to 97.30 but reversed its direction. At the moment, the index is at 97.10, losing 0.04% on a daily basis.

Risk appetite softens on Tuesday

The risk rally seems to be losing its momentum amid a lack of fresh developments following the completion of the phase-one US-China trade deal. After closing the previous day with decisive gains, major European equity indexes are posting moderate losses on Tuesday. Furthermore, the 10-year US Treasury bond yield is erasing 0.75% on the day to reflect the sour mood, which helps the CHF find demand as a safe-haven.

Commenting on the US-China trade dispute, "official communication from China has so far been notably lacking in detail on the amounts imports from the US would rise by, and Chinese officials cautioned in a rare press conference last Friday that any increases ‘should be based on market principles and WTO rules’," noted ABN AMRO analysts. “Such parameters defining the deal means trade relations will remain fragile, and while a step in the right direction, we fear the deal could be torn up if President Trump finds himself dissatisfied with the progress made next year."

In the second half of the day, Building Permits, Housing Starts and Industrial Production data from the US will be looked upon for fresh impetus.

Technical levels to watch for


Today last price 0.9818
Today Daily Change -0.0007
Today Daily Change % -0.07
Today daily open 0.9825
Daily SMA20 0.9907
Daily SMA50 0.9914
Daily SMA100 0.9888
Daily SMA200 0.9939
Previous Daily High 0.9847
Previous Daily Low 0.9819
Previous Weekly High 0.9912
Previous Weekly Low 0.9806
Previous Monthly High 1.0024
Previous Monthly Low 0.985
Daily Fibonacci 38.2% 0.983
Daily Fibonacci 61.8% 0.9836
Daily Pivot Point S1 0.9814
Daily Pivot Point S2 0.9802
Daily Pivot Point S3 0.9786
Daily Pivot Point R1 0.9842
Daily Pivot Point R2 0.9858
Daily Pivot Point R3 0.987



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