#USDCHF @ 0.97687 US dollar tumbles as bonds rise sharply. (Pivot Orderbook analysis)

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• US dollar tumbles as bonds rise sharply.
• BoE buys bonds, triggers global rebound in stocks and commodities.
• USD/CHF accelerates correction from three-month highs.

The pair currently trades last at 0.97687.

The previous day high was 0.9947 while the previous day low was 0.9849. The daily 38.2% Fib levels comes at 0.9886, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.991, expected to provide resistance.

The USD/CHF dropped sharply from the highest level in three months, near the parity area and bottomed at 0.9743, a one-week low. The pair remains below 0.9800 with a negative tone as the US dollar slides across the board.

The greenback weakened amid a rally in Treasuries and in equity markets. The announcement of the Bank of England buying gilts triggered sharp moves and activated a recovery in bonds. The BoE said it purchased on Wednesday £1.025B of gilts. US yields pulled back sharply from multi-year highs. The US 10-year yield dropped from above 4.00% to 3.76%.

The Swiss franc also rose versus the euro and the pound favored by the moves in the bond market.

The USD/CHF rose earlier to test Monday’s top at 0.9965 and failed to break it, and then retreat sharply breaking below 0.9860, confirming a double top formation. The target of the formation is around 0.9730, near Wednesday’s low at 0.9744. A few pips below, awaits the 20-day Simple Moving Average at 0.9725.

A daily close under the 20-day SMA could change the bearish short-term bias to neutral or bearish. The US dollar needs to recovers levels above 0.9880 in order to strengthen again.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.9792 at the time of writing. Pair opened at 0.9918 and is trading with a change of -1.27 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.9727, 50 SMA 0.964, 100 SMA @ 0.9685 and 200 SMA @ 0.9503.

The previous day high was 0.9947 while the previous day low was 0.9849. The daily 38.2% Fib levels comes at 0.9886, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.991, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.9862, 0.9807, 0.9764
• Pivot resistance is noted at 0.996, 1.0003, 1.0059

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