#USDCHF @ 0.96641 is auctioning around 0.9660 ahead of a decisive move post-Fed policy scrutiny. (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 auctioning around 0.9660 ahead of a decisive move post-Fed policy scrutiny.
• The Fed’s roadmap for fighting inflation will impact the growth rate, job opportunities, and housing space.
• A rate hike of 75 bps will shift SNB’s interest rates into positive territory after a decade.

The pair currently trades last at 0.96641.

The previous day high was 0.9682 while the previous day low was 0.9623. The daily 38.2% Fib levels comes at 0.9646, expected to provide support. Similarly, the daily 61.8% fib level is at 0.966, expected to provide support.

The USD/CHF pair is juggling around 0.9660 in the early Tokyo session as volatility oscillators are having a sigh of relief after a notably higher volatile session. The asset gyrated in an extreme range of 0.9620-0.9700 and has turned sideways as investors are busy with the task of Federal Reserve (Fed)’s monetary policy scrutiny for a decisive move ahead.

Wednesday’s monetary policy from the Fed has turned out a nightmare for the risk-sensitive assets. The roadmap put forward to combat inflation is full of barricades for growth rate, employment generation, and housing sector in the US economy.

The Fed has laid down a target for the interest rate at 4.6% and is looking to reach 4.4% by the end of 2023, much higher than the prior peak estimation of 3.8%. This builds a case for two possibilities either the inflation rate is not responding well to the current pace of hiking interest rates or the inflation chaos is extremely huge and is need to be contained sooner.

Meanwhile, the US dollar index (DXY) is set to recapture the fresh two-decade high at 111.58. The DXY will continue its dream run as the labor market is extremely tight and has been supporting the Fed in hiking the interest rates unhesitatingly.

On the Swiss franc front, investors are awaiting the release of the interest rate decision by the Swiss National Bank. SNB Chairman Thomas J. Jordan is expected to hike the interest rates by 75 basis points. A bigger rate hike is expected from the SNB as the central bank announces its monetary policy once a quarter. A rate hike of 75 bps will turn the interest rates positive at 0.5%. SNB’s interest rate will shift into a positive trajectory after a decade.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.9664 at the time of writing. Pair opened at 0.9643 and is trading with a change of 0.22 % .

The pair is trading below its 20 Daily moving average @ 0.9691, above its 50 Daily moving average @ 0.9635 , below its 100 Daily moving average @ 0.9688 and above its 200 Daily moving average @ 0.9489

The previous day high was 0.9682 while the previous day low was 0.9623. The daily 38.2% Fib levels comes at 0.9646, expected to provide support. Similarly, the daily 61.8% fib level is at 0.966, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.9617, 0.959, 0.9557
• Pivot resistance is noted at 0.9676, 0.9709, 0.9735

[/s2If]
Join Our Telegram Group