#USDCHF @ 0.96151 holds steady above the 0.96000 mark and looks to build on the overnight strong move up. (Pivot Orderbook analysis)

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• USD/CHF holds steady above the 0.96000 mark and looks to build on the overnight strong move up.
• Bets for more aggressive rate hikes by the Fed favour the USD bulls and reaffirms the positive bias.
• Signs of stability in the equity markets undermine the safe-haven CHF and offers additional support.

The pair currently trades last at 0.96151.

The previous day high was 0.9634 while the previous day low was 0.948. The daily 38.2% Fib levels comes at 0.9575, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9538, expected to provide support.

The USD/CHF pair consolidates the overnight strong rally of over 150 pips from a nearly one-month low and oscillates in a range, above the 0.9600 mark through the early European session on Wednesday.

The US dollar edges lower and erodes a part of Tuesday’s stronger US consumer inflation data-inspired rally amid a modest downtick in the US Treasury bond yields. This, in turn, is seen as a key factor acting as a headwind for the USD/CHF pair. That said, firming expectations that the Federal Reserve will keep raising interest rates at a faster pace to tame inflation should help limit any meaningful downfall for the US bond yields and the greenback.

In fact, the markets have started pricing in the possibility of a full 1% rate hike in the September FOMC meeting and another supersized 75 bps increase in November. The bets were reaffirmed by the US CPI report and lifted the yield on rate-sensitive two-year US government bonds to an almost 15-year high. Apart from this, signs of stability in the financial markets could undermine the safe-haven Swiss franc and offer some support to the USD/CHF pair.

The fundamental backdrop seems tilted in favour of bullish traders and suggests that the recent sharp pullback from the 0.9870 area or a nearly two-month high has run its course. Hence, any meaningful dip could now be seen as a buying opportunity and remain limited. The USD/CHF pair seems poised to climb further towards reclaiming the 0.9700 round-figure mark. Traders now look forward to the US Producer Price Index (PPI) for a fresh impetus.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.9612 at the time of writing. Pair opened at 0.9616 and is trading with a change of -0.04 % .

The pair is trading below its 20 Daily moving average @ 0.968, below its 50 Daily moving average @ 0.9648 , below its 100 Daily moving average @ 0.9693 and above its 200 Daily moving average @ 0.9478

The previous day high was 0.9634 while the previous day low was 0.948. The daily 38.2% Fib levels comes at 0.9575, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9538, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.9519, 0.9422, 0.9365
• Pivot resistance is noted at 0.9673, 0.973, 0.9827

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