KEY POINTS OF THE ARTICLE:

• General context: China is thwarting the recovery of the dollar
• Today's currency: USD/CHF: the fall continues but a bullish divergence appears

Currency Table-Time Horizon: Daily

RESISTANCE

SUPPORT

Bullish oblique in support

0.7

USD/CHF

GENERAL CONTEXT: CHINA IS THWARTING THE RECOVERY OF THE DOLLAR

The dollar fell against major currencies on Tuesday after benefiting from its safe-haven status with global stock markets falling on Monday. China has set the official exchange rate of the yuan at its highest level since it abandoned its anchoring in 2005, helping to support demand for Asian currencies.

Australian and New Zealand dollars are the winners among the main currencies, with the action of the People's Bank of China (PBOC) encouraging the sale of dollars on the market.

Previously, the greenback had found support, as concerns about the rise in Covid-19 cases and uncertainty about the second round of the US elections in Georgia caused US equities to fall from the highs reached at the beginning of the year and stimulated demand for safer assets.Volatility gripped markets around the world, causing equities to fall, in a context where there are fears that an increase in coronavirus cases could hamper the nascent economic recovery. The United Kingdom has decided to put in place a new lockdown. Traders were also nervous ahead of the second round of elections in Georgia, which could determine whether Democrats have control of Congress, which will allow Joe Biden to fully implement his economic program

TODAY'S CURRENCY: USD/CHF: THE FALL CONTINUES BUT AN UPWARD DIVERGENCE APPEARS

The Swiss franc dollar was only slightly affected by yesterday's volatility, continuing to fall towards horizontal support, corresponding to a level dating from 2014. The moving averages are trending downwards and prices are moving below, confirming the downward trend

However, a bullish divergence has appeared on the RSI, which warns of a possible short-term rebound. The negative scenario would be abandoned upon returning and crossing the old support becoming resistance according to the polarity principle at 0.8985

Evolution of the dollar against the Swiss franc in daily data: