#USDCHF @ 0.92955 US CPI climbs toward 7.1% YoY, while core inflation drops to the 6% threshold. (Pivot Orderbook analysis)

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• US CPI climbs toward 7.1% YoY, while core inflation drops to the 6% threshold.
• USD/CHF: A daily close below 0.9300 to pave the way towards 0.9150.
• Investors focus shifted toward the Federal Reserve monetary policy on Wednesday.

The pair currently trades last at 0.92955.

The previous day high was 0.938 while the previous day low was 0.9313. The daily 38.2% Fib levels comes at 0.9355, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9339, expected to provide resistance.

The USD/CHF stumbles and refreshes eight-month lows, around 0.9231, after hitting a daily high of 0.9375, following the release of US inflation figures, which eased a bit, taking pressure off the Federal Reserve (Fed), which would meet on Wednesday, for the last time in the year. At the time of writing, the USD/CHF is trading at 0.9280, below its opening price, by 0.85%.

Wall Street remains trading with gains while the US Dollar (USD) sinks. On Tuesday, the US Department of Labor revealed the Consumer Price Index (CPI) for November, which decreased year-over-year by 7.1%, below analysts’ predictions of 7.3%. In addition, core CPI shifted upwards during September and then moved back down again – standing at 6% lower than initial projections of 6.3% for November figures.

The US Dollar Index, a gauge of the buck’s value against a basket of six currencies, is dropping 0.99%, at 103.961, after hitting a low of 103.586, undermined by falling US Treasury yields. In the fixed income space, the US 10-year T-bond yield is falling twelve bps, at 3.485%, as traders began to price in a less aggressive Federal Reserve.

On the Switzerland side, the Seco economic forecasts confirmed that the Swiss economy is estimated to grow significantly below-average rate of 1.0% in 2023, followed by 1.6% in 2024 GDP. It should be said that the projections assume no energy supply shortages in 2022 and 2023 next winter.

The USD/CHF broke to the downside, the falling wedge, though a daily close below 0.9300 would be needed, to further cement the downward bias, confirmed by oscillators. The Relative Strength Index (RSI), at bearish territory, points downward. In the case of the Rate of Change (RoC), it keeps pressuring to the downside, portraying that sellers are gathering momentum.

Hence, the USD/CHF key support levels are the 0.9200 figure, followed by the March 22 daily low at 0.9194, ahead of the February 21 daily low at 0.9150.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.9281 at the time of writing. Pair opened at 0.9362 and is trading with a change of -0.87 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.9446, 50 SMA 0.9725, 100 SMA @ 0.9689 and 200 SMA @ 0.9647.

The previous day high was 0.938 while the previous day low was 0.9313. The daily 38.2% Fib levels comes at 0.9355, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9339, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.9324, 0.9285, 0.9257
• Pivot resistance is noted at 0.939, 0.9419, 0.9457

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