USD/CHF picks up bids to refresh intraday high near 0.9115, consolidating the previous day’s losses during early Wednesday. The Swiss currency (CHF) pair seems to track the consolidation in the US Treasury yields to lick Tuesday’s wounds ahead of the key US inflation numbers for October.

On Tuesday, the risk-off mood weighed on the US Treasury yields and the US Dollar Index (DXY) but the bulls have recently been cautious amid slightly positive headlines over US stimulus, as well as expectations of two Fed rate hikes in 2022. That said, the DXY dropped for three consecutive days in the last before recently taking rounds to 93.95. Bulls seemed unaffected by the emergence of some US dollar selling, which, so far, has failed to gain any traction despite a solid rebound in US Treasury bond yields. Investors looked past the Fed's dovish message last week and seemed convinced that the US central bank would be forced to adopt a more aggressive policy response to contain stubbornly high inflation.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Looking forward, US inflation figures become the key catalyst for the USD/CHF traders as firmer price pressure leads to faster rolling back of the Fed’s easy money, which in turn can help the quote to pare recent losses. The monthly resistance line precedes the 200-DMA, respectively around 0.9130 and 0.9160, to restrict short-term up-moves of the USD/CHF prices. With the bearish MACD signals and the pair’s sustained trading below the stated resistances, the quote is likely declining towards the monthly low near 0.9090.

USDJPY looking forward to monthly pivot at 0.91992

Nov 10 2021