FX.co ★ USD/CHF

The US Dollar (USD) turned its earlier rally against the Swiss Franc (CHF) into losses on Wednesday, falling more than 0.5% on the daily chart amid uncertainty over the repercussions of Democrats' decisive win in US mid-term elections. The USD/CHF pair is seen near 0.8160 in the early European session, having rebounded from eight-week lows of 0.8127, but it continues its bearish trend. Investors dumped the US Dollar on Wednesday amid reports that US election results showed voters clearly rejected President Donald Trump's policies. Democrats won Congress and the Senate and took control of hardcore Republican states such as Kansas, North Carolina, and Texas. "According to ING's Chris Turner, the latest US Dollar rebound is 'possibly because the Democrats don't actually take office until January,' as well as President Trump 'accepting the outcome of this,' and as such, this has reduced post-midterms follow-through selling pressure," according to ING's Chris Turner. Notably, however, as Chris Turner stated, "A Democratic Congress would be a relatively dollar negative outcome – particularly given the implications on the AI story and the possibility of a prolonged US Government shutdown from next summer onwards." The USD/CHF rose to 0.8159 in the initial European session but continues to trade in a bearish channel, and the rejection at 0.8220 on Tuesday further confirms the Double Top (DT) formation at 0.8380, giving bears additional hope. Momentum oscillators on 4-hour charts are supportive of this scenario, as the Relative Strength Index (14) continues to stay below 40 while staying above oversold territory, and the Moving Average Convergence Divergence (MACD) is slightly negative, suggesting that the near-term upside momentum is not strong. The downside push has been contained around 0.8130, while the noted DT target is the initial September lows around 0.8050-0.8070. Conversely, bulls need to break the noted DT neckline at 0.8220 to target the initial November highs around 0.8250 and the October 28 high at 0.8313.