#USDCHF @ 1.00050 has confidently reclaimed the psychological resistance of 1.0000 despite an upbeat market mood. (Pivot Orderbook analysis)

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• USD/CHF has confidently reclaimed the psychological resistance of 1.0000 despite an upbeat market mood.
• The DXY is trading lackluster amid the unavailability of a potential trigger.
• Fed’s extreme tightening measures have opened doors for recession risk.

The pair currently trades last at 1.00050.

The previous day high was 1.0032 while the previous day low was 0.9944. The daily 38.2% Fib levels comes at 0.9998, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9978, expected to provide support.

The USD/CHF pair has extended its recovery above 1.0004 in the Tokyo session after a rebound from 0.9980. The asset has picked bids despite a subdued performance by the US dollar index (DXY). The mighty DXY is displaying an intraday inventory adjustment phase, which could deliver an explosion of the volatility contraction in the European session.

The risk-on profile is getting back into the picture as S&P500 futures have extended their gains after recovering their morning losses. Meanwhile, the returns on US government bonds have slipped further as investors’ risk appetite is improving. 10-year US Treasury yields have dropped marginally below 4.21%.

The investing community is shifting its focus toward the US Gross Domestic Product (GDP) data, which is due on Thursday. As per the projections, the US growth rate is seen higher at 2.4% vs. a decline of 0.6% reported earlier. An occurrence of the same could delight the Fed as the labor market is losing its charm and inflationary pressures are not providing solid evidence of a slowdown in the pace of the inflation rate.

As accelerating interest rates have forced institutions to trim their economic projections for the US economy, eventually, fears of recession risk have escalated. US Treasury Chief Janet Yellen cited “Cannot rule out risk” of a recession, reported MSNBC news.

On the Swiss Franc front, investors are awaiting the release of the ZEW Survey-Expectations data. The economy catalyst is seen lower at -43.8 vs. the prior release of -69.2. An improvement in business and employment conditions could support the Swiss franc bulls ahead.

Technical Levels: Supports and Resistances

USDCHF currently trading at 1.0004 at the time of writing. Pair opened at 1.0014 and is trading with a change of -0.1 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.9934, 50 SMA 0.9783, 100 SMA @ 0.9722 and 200 SMA @ 0.9576.

The previous day high was 1.0032 while the previous day low was 0.9944. The daily 38.2% Fib levels comes at 0.9998, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9978, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.9962, 0.9909, 0.9874
• Pivot resistance is noted at 1.005, 1.0085, 1.0137

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