USDCHF falling on broad USD selling.
USDCHF under bearish pressure on expectations of more monetary stimulus from the United States. The markets are expecting the Federal Reserve will soon act to support the U.S. economy through the winter before vaccinations become available. The risk-on sentiment is also growing as the result of the earlier report that, China’s factory sector rose at the fastest pace in a decade in November. This is forcing the safe-haven USD longs to close their positions – adding to the pressure on the linked currency pairs – USDCHF and EURUSD. USDCHF is seen as the better outlet for USD bearishness as the pair is still some distance away from the next key support level 0.9000, while EURUSD is already a few pips to 1.2000.
Expect sellers on upward corrections.
Next support to watch – 0.9000
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