USD/CHF trims losses and approaches 0.9300

The US dollar has regained lost ground on Tuesday, following three consecutive days in the red, after bouncing at 0.9225 lows and return to levels near 0.9300. The safe-haven Swiss Franc has lost ground amid a moderate risk appetite and a somewhat firmer US dollar.

US dollar, buoyed by higher US yields

The greenback has bounced up against most of its main rivals on Tuesday, to take back lost ground amid higher US Treasury yields and a moderate appetite for risk with the world’s major stock markets showing a positive tone.

Investors, however, remain largely cautious, with all eyes on the release of September’s US employment data due on Friday. The market is bracing for a strong increase in private payrolls to prompt the Federal Reserve to officially announce the end of the Quantitative Easing program at November’s meeting.

Furthermore, macroeconomic data has shown the US trading deficit expanding to its highest level on record, with a $73.3 Billion shortfall while, on the positive side, US services sectors’ activity improved in September, although shortages on raw materials have pushed prices higher, weighing on employment growth.

USD/CHF’s long-term risk remains higher – Credit Suisse

From a broader perspective, the FX Analysis team at Credit Suisse remain bullish on the with key resistance at  0.9356/70: “We look for trend and price support at 0.9214/12 to try and hold with resistance seen at 0.9281 initially, with a break above 0.9324 needed to clear the way for a retest of 0.9356/70. Beyond here would mark a significant break higher with little then seen in the way of meaningful resistance until the 0.9473 April high.” 

Technical levels to watch