USD/CHF recovery attempts stall 0.9090 resistance area
- US dollar upside attempts stall below 0.9100.
- USD remains at recent levels despite the strong risk aversion.
- USD/CHF fails to put distance from multi-year lows at 0.9000.
The US dollar is attempting to pick up from levels near multi-year lows, at 0.9000 against the Swiss franc. The pair has picked up to the upper range of 0.9000 on Monday, although upside attempts are missing traction to break resistance at 0.9090/0.9100 area.
US dollar appreciates on coronavirus concerns
The greenback is outperforming its main rivals on Monday fuelled by a strong risk-averse sentiment amid the global increase of COVID-19 infections. News reports about France and the US showing record numbers of infections and Spain declaring the second state of emergency this hear have dampened market mood, which has reflected on a rush for safety tat has boosted demand for the US dollar.
Upbeat reports about the progress on the Oxford/AstraZeneca vaccine, which has shown a strong immune response in elderly patients has failed to brighter market sentiment. European equity markets have closed with solid losses and the main Wall Street indexes are printing declines beyond 2% with investors rushing away from risk.
USD/CHF remains dangerously close to multi-year lows at 0.9000
From a technical perspective, the pair remains in a negative trend from late September highs at 0.9300, with immediate support at 0.9030 (October 21 low) before 0.9000 (September 1 low), below here, the pair would tread into levels unseen since early 2015.
On the upside, the USD should break above 0.9090 (October 23 lows) to ease bearish pressure and aim towards the 50-day SMA, now at 0.9125 and then to mid-October highs at 0.9160.