#USDCHF @ 0.97732 is expected to display more downside on slippage below 0.9760. (Pivot Orderbook analysis)

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• USD/CHF is expected to display more downside on slippage below 0.9760.
• A shift in the consumption pattern of US households has weakened the greenback bulls.
• The speech from Fed Powell and the Swiss franc jobless rate will hog the limelight.

The pair currently trades last at 0.97732.

The previous day high was 0.9862 while the previous day low was 0.9766. The daily 38.2% Fib levels comes at 0.9825, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9803, expected to provide resistance.

The USD/CHF pair is displaying a hiatus after a perpendicular fall on Wednesday. The asset is witnessing back-and-forth moves in a narrow range of 0.9758-0.9770 in the early Asian session and is likely to record more weakness after a downside break of the same. Earlier, the asset witnessed an extreme sell-off while re-testing the previous week’s high near 0.9860. The major sensed sell-off after the release of the minutes from the Federal Reserve (Fed) Beige Book.

The economic report from banks that dictate a qualitative review of economic conditions in the US indicated a shift in the consumption pattern of the households. As individuals are bound to make higher payouts due to a higher price rise index, a decline in consumption of durable goods has been observed whose demand can be postponed. While demand for necessities remained the same as their requirements cannot be postponed.

However, hawkish commentary from Fed Vice Chair Lael Brainard failed to support the greenback bulls. Fed policymakers cited that the central bank will continue its restrictive approach till it records a decline in the inflation rate for several months. The Fed needs to be confident that the desired rate of 2% will be accomplished before trimming the hawkish tone.

In today’s session, the speech from Fed chair Jerome Powell will remain in the spotlight. Investors should brace for a hawkish commentary from Fed Powell on interest rates as price pressures are still highly deviated from the desired rate.

On the Swiss franc front, investors are awaiting the release of the Unemployment Rate. The jobless rate is seen as stable at 2.2% on a monthly basis. A lower-than-expected jobless rate will strengthen the Swiss franc bulls.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.9765 at the time of writing. Pair opened at 0.984 and is trading with a change of -0.76 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.963, 50 SMA 0.9644, 100 SMA @ 0.9689 and 200 SMA @ 0.9468.

The previous day high was 0.9862 while the previous day low was 0.9766. The daily 38.2% Fib levels comes at 0.9825, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9803, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.9784, 0.9727, 0.9687
• Pivot resistance is noted at 0.988, 0.9919, 0.9976

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