#USDCHF @ 0.98121 catches aggressive bids on Thursday and rallies over 200 pips from the daily low. (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 catches aggressive bids on Thursday and rallies over 200 pips from the daily low.
• The SNB’s 50 bps seems to have disappointed traders and weighs heavily on the Swiss franc.
• The USD trims a part of intraday retracement losses and remains supportive of the move up.

The pair currently trades last at 0.98121.

The previous day high was 0.97 while the previous day low was 0.962. The daily 38.2% Fib levels comes at 0.967, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9651, expected to provide support.

The USD/CHF pair catches aggressive bids after the Swiss National Bank announced its policy decision earlier this Thursday and continues scaling higher through the mid-European session. The momentum lifts spot prices to a fresh two-week high, though stalls ahead of the 0.9860-0.9870 supply zone tested in August and earlier this month.

The SNB hikes its policy rate by 75 bps, as was widely expected, though some market participants have been pricing in a more aggressive 100 bps increase going into the decision. This turns out to be a key factor that weighs heavily on the Swiss franc and prompts aggressive short covering around the USD/CHF pair.

The strong intraday ascent takes along some short-term trading stops placed near the 100-day SMA. A subsequent strength and acceptance above the 0.9700 mark prompt some technical buying. This, along with the emergence of some US dollar dip-buying, provides an additional lift to the USD/CHF pair and remains supportive.

The initial market reaction to the news that the Japanese government has intervened in the forex market is fading rather quickly. Apart from this, a more hawkish stance adopted by the Federal Reserve continues to act as a tailwind for the greenback. This, in turn, supports prospects for additional gains for the USD/CHF pair.

Bulls, however, might prefer to wait for a sustained strength beyond the 0.9860-0.9870 region before positioning for any further appreciating move. Next on tap will be the release of the US Weekly Initial Jobless Claims data, which might influence the USD price dynamics and provide some impetus to the USD/CHF pair.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.9819 at the time of writing. Pair opened at 0.9664 and is trading with a change of 1.6 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.9691, 50 SMA 0.9632, 100 SMA @ 0.9687 and 200 SMA @ 0.9491.

The previous day high was 0.97 while the previous day low was 0.962. The daily 38.2% Fib levels comes at 0.967, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9651, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.9623, 0.9582, 0.9543
• Pivot resistance is noted at 0.9703, 0.9741, 0.9783

[/s2If]
Join Our Telegram Group