The robust selling bias encompassing the greenback drove the USD/CHF pair to recent lows during the European session. The sellers are now eyeing to test the support mark of 0.9400 and even lower. The di[ in the USD/CHF pair was exclusively sponsored by the emergence of some recent selling bias in the U.S. dollar, which was pressed down the demand for USD/CHF pair/
The risk sentiment initially got some support from the latest optimism about a potential coronavirus vaccine, which overshadowed concerns about surging COVID-19 cases in most countries. Although, the hopes of vaccine success increased after Moderna’s potential vaccine produced a “robust” immune response in all 45 patients in its early-stage human trials, providing more promising data that the vaccine may give some protection against the coronavirus. Dr. Anthony Fauci, the leading expert on infectious diseases in the U.S., also joined optimism while saying that the country will meet its goal regarding COVID-19 vaccine by year’s end, spurring hopes of an economic recovery.
At the US-China front, the long-lasting tussle between the world’s top two economies continuously increasing day by day as the U.S. policymakers were set to levy heavy sanctions on China’s ruling party members. As per the White House Chief of Staff, Mark Meadows, the Trump administration is studying national security risks of TikTok, WeChat, and other apps that allow a foreign adversary to gather information on users. However, these interfacing concerns about worsening US-China relations formed some safe-haven flows towards the Japanese yen and contributed to the currency pair declines.
Despite the worries about the second wave of the coronavirus infections and the better-than-expected U.S. macro releases, the broad-based U.S. dollar failed to gain any positive traction and edged lower on the day. However, the losses in the U.S. dollar could be attributed to the uptick in the U.S. stock futures. However, the declines in the U.S. dollar kept the currency pair lower. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies was down 0.07% to 96.250 by 9:55 PM ET (2:55 AM GMT).
Considering the increase save haven appeal amid increased COVID19 cases and weakness in the U.S. dollar, the USD/CHF pair faces intense bearish pressure. The hybrid of ll bearish fundamentals has driven a sharp selling bias in the USD/CHF pair. Besides, the USD/CHF pair had violated the ascending triangle pattern on the lower side, which lead it’s prices further lower until 0.9400 level. The 50 EMA suggests selling around 0.9435, while the RSI and MACD are also in support of bearish bias. Check out a quick trade plan below.
Entry Price – Sell 0.94431
Stop Loss – 0.94831
Take Profit – 0.94031
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40
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