#USDCHF @ 0.98040 is marching towards a six-week high to near 0.9860 amid an upbeat DXY. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• USD/CHF is marching towards a six-week high to near 0.9860 amid an upbeat DXY.
• In this week’s key event, US ISM Services PMI data is seen lower at 54.9 vs. 56.7.
• Swiss Franc CPI has escalated by 10 bps to 3.5%.

The pair currently trades last at 0.98040.

The previous day high was 0.986 while the previous day low was 0.9784. The daily 38.2% Fib levels comes at 0.9813, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9831, expected to provide resistance.

The USD/CHF pair is scaling higher gradually towards the six-week high near 0.9860 in the early Tokyo session. On a broader note, the asset has turned sideways after remaining in the grip of bulls for the past month. The major is oscillating in a 0.9783-0.9859 range and is expected to deliver a vertical upside move ahead.

The asset has strengthened significantly after the release of an upbeat US Nonfarm Payrolls (NFP) on Friday. As the US economy has added 315k jobs in August against expectations of 300k, odds of a third consecutive 75 basis points (bps) rate hike by the Federal Reserve (Fed) have soared. Fed policymakers are facing the harsh reality of delayed response on higher inflation. However, the spree of decent labor additions in the US economy is trimming troubles for the Fed.

Meanwhile, the US dollar index (DXY) has printed a fresh two-decade high at 110.03 despite an escalation in the Unemployment Rate. The jobless rate landed at 3.7% higher than the expectation and the prior release of 3.5%. Going forward, investors will focus on the US ISM Services PMI data, which will release on Tuesday. The economic data is expected to decline to 54.9 against the prior release of 56.7. Investors should be informed that the US markets will remain closed on Monday on account of Labor Day.

Meanwhile, less-than-expected Real Retail Sales data have weakened the Swiss franc. The economic data landed at 2.6%, lower than the consensus of 3.3% but remained higher than the prior release of 0.7%. Also, the Consumer Price Index (CPI) has improved to 3.5% against expectations and the former print of 3.4% on an annual basis.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.9834 at the time of writing. Pair opened at 0.9811 and is trading with a change of 0.23 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.9602, 50 SMA 0.9634, 100 SMA @ 0.9682 and 200 SMA @ 0.9462.

The previous day high was 0.986 while the previous day low was 0.9784. The daily 38.2% Fib levels comes at 0.9813, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9831, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.9776, 0.9742, 0.9701
• Pivot resistance is noted at 0.9852, 0.9894, 0.9928

[/s2If]
Join Our Telegram Group