USD/CHF struggles to stage a rebound, stays in red near 0.8870

USD/CHF is falling for third straight day on Tuesday.
US Dollar Index tests 90.00 ahead of American session.
Wall Street looks to build on Monday's gains.

Eren Sengezer FXStreet

The USD/CHF closed in the negative territory for the second straight trading day on Monday and extended its slide during the European trading hours on Tuesday. After touching its lowest level in a week at 0.8848, the pair seems to have gone into a consolidation phase and was last seen losing 0.2% on the day at 0.8865.

Investors continue to sell USD ahead of New Year holiday

The broad-based USD weakness is causing USD/CHF to push lower. The US Dollar Index (DXY) is testing 90.00 ahead of the American session and down 0.36% on a daily basis.

The strong performance of major global equity indexes makes it difficult for the greenback to find demand as a safe-haven. Wall Street's main indexes climbed to new all-time highs on Monday after US President Donald Trump signed the coronavirus relief bill into law late Sunday.

Moreover, the EU-UK trade deal and the vaccine rollout provide a boost to investor optimism heading into 2021.

There won't be any macroeconomic data releases from the US and the DXY is unlikely to stage a rebound as US stocks remain on track to notch fresh record tops at the opening bell.

Technical levels to watch for

USD/CHF

Overview
Today last price	0.8868
Today Daily Change	-0.0024
Today Daily Change %	-0.27
Today daily open	0.8892

Trends
Daily SMA20	0.8893
Daily SMA50	0.902
Daily SMA100	0.9076
Daily SMA200	0.9307

Levels
Previous Daily High	0.8919
Previous Daily Low	0.8876
Previous Weekly High	0.8919
Previous Weekly Low	0.8833
Previous Monthly High	0.9208
Previous Monthly Low	0.8982
Daily Fibonacci 38.2%	0.8893
Daily Fibonacci 61.8%	0.8903
Daily Pivot Point S1	0.8872
Daily Pivot Point S2	0.8853
Daily Pivot Point S3	0.883
Daily Pivot Point R1	0.8915
Daily Pivot Point R2	0.8938
Daily Pivot Point R3	0.8958

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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