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Lockdown concerns in China are encouraging traders to buy the safe-haven dollar.

Will today’s market themes extend USD/CHF’s bounce from a range support?

Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

Several Beijing districts shut schools as China reports rising cases, first COVID deaths in six months

Germany’s producer price inflation up by 34.5% y/y in October, down from 45.8% in September

Oil prices ease to trade near 2-month lows on China demand fears, dollar strength

Disney brings back Bob Iger as CEO in bid to boost growth

Upcoming Potential Catalysts on the Forex Economic Calendar:

BOE’s Cunliffe to give a speech at 9:05 am GMT
AU CB leading index at 3:30 pm GMT
New Zealand’s trade balance at 9:45 pm GMT
BOJ’s core CPI at 5:00 am GMT

Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️

What to Watch: USD/CHF

USD/CHF 4-hour Forex Chart

USD/CHF 4-hour Forex Chart

There were not a lot of top-tier reports printed during the Asian session but we did see a bit risk sentiment-driven volatility.

Specifically, traders priced in their global growth concerns after China not only reported rising COVID cases but Beijing also clocked its first COVID-related deaths in six months.

Naturally, speculations of the world’s second-largest economy expanding its lockdown restrictions weighed on risk appetite.

The safe-haven dollar got another boost especially after several FOMC members hinted at higher interest rates or a longer period of high interest rate.

USD/CHF, which already bounced from its .9400 range support, gained more ground and made new daily highs at the start of the European session.

Will USD continue to gain pips against its major counterparts including CHF?

Stochastic is already flashing an “overbought” signal as USD/CHF makes its way towards .9600.

If U.S. session traders pick up on the dollar-buying theme, then USD/CHF could reach the .9700 psychologial handle or the .9750 mid-range levels.

If other market themes push USD lower today, however, then USD/CHF could find enough momentum to go back down to the .9500 and .9400 previous areas of interest.