#USDCHF @ 0.96435 has sensed a sigh of relief after declining to near 0.9640 as DXY loses steam. (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 has sensed a sigh of relief after declining to near 0.9640 as DXY loses steam.
• The Fed should come out with an ‘out of the box’ solution to cool off the red-hot inflation sooner.
• A 75 bps rate hike by the SNB will push the interest rates to a positive zone after a period of 10 years.

The pair currently trades last at 0.96435.

The previous day high was 0.9661 while the previous day low was 0.9601. The daily 38.2% Fib levels comes at 0.9638, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9624, expected to provide support.

The USD/CHF pair is attempting to build a base of around 0.9640 in the early Asian session. Earlier, the asset witnessed a steep fall after failing to strike the round-level resistance of 0.9700. The correction in the asset ensures the unavailability of sheer momentum and will conclude sooner. A lackluster performance is expected from the asset ahead as investors will await the announcement of the monetary policies for making informed decisions.

Recent events clear the responsiveness of change in the inflation rate is not desired as per the change in the interest rates by the Federal Reserve (Fed). The current pace of hiking interest rates by the Fed is extremely high and disappointment with the resulting outcome will force the Fed either to come out with an ‘out of the box’ solution or scale up the current pace to bring price stability sooner and the overall demand could accelerate further.

So expectations of a full percent rate hike by the Fed cannot be ruled out as the Fed will deploy its entire chaos to achieve its foremost priority. For a longer-term perspective, the Financial Times has come forward with an interest rate target of 4-5% in 2023, which will sustain beyond 2023 and only a series of slowdowns in price pressures will compel the Fed to turn ‘neutral’.

On the Swiss franc front, the interest rate decision from the Swiss National Bank (SNB) will also hog the limelight. The inflation rate in the Swiss region is rising at a modest pace and has landed at 3.5% in August 2022. Considering the market consensus, SNB Chairman Thomas J. Jordan will announce a rate hike by 75 basis points (bps), which will push the interest rates into the positive territory to 0.5%. The SNB interest rates will enter positive territory after a period of 10 years.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.9642 at the time of writing. Pair opened at 0.9648 and is trading with a change of -0.06 % .

The pair is trading below its 20 Daily moving average @ 0.9691, below its 50 Daily moving average @ 0.9642 , below its 100 Daily moving average @ 0.9691 and above its 200 Daily moving average @ 0.9485

The previous day high was 0.9661 while the previous day low was 0.9601. The daily 38.2% Fib levels comes at 0.9638, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9624, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.9612, 0.9576, 0.9551
• Pivot resistance is noted at 0.9672, 0.9697, 0.9733

[/s2If]
Join Our Telegram Group