#USDCHF @ 0.92134 has picked demand after a marginal correction to near 0.9200. (Pivot Orderbook analysis)

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• USD/CHF has picked demand after a marginal correction to near 0.9200.
• The risk-on profile is easing further, weighed down by rising US Treasury yields.
• Fed Bostic sees no recession in CY2023 but has trimmed the GDP forecast dramatically to 1%.

The pair currently trades last at 0.92134.

The previous day high was 0.941 while the previous day low was 0.927. The daily 38.2% Fib levels comes at 0.9324, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9356, expected to provide resistance.

The USD/CHF pair has sensed buying interest after dropping to near the round-level support of 0.9200 in the early Asian session. Earlier, the Swiss franc asset extended its recovery above the immediate resistance of 0.9200 despite a cheerful market mood.

S&P500 futures are displaying a subdued performance after a corrective move on Monday as equities failed to extend a rally. Stretched upside in stocks triggered long liquidation. The US Dollar Index (DXY) has refreshed its seven-month low at around 102.50 led by soaring recession fears after a meaningful contraction in economic activities and less-hawkish monetary policy projections after a sheer drop in wage inflation.

The demand for US government bonds is losing traction further as investors’ risk appetite is declining again. This has led to an increase in 10-year US Treasury yields above 3.53%.

On Tuesday, the show-stopper event will be the speech from Federal Reserve (Fed) chair Jerome Powell, which will trim ambiguity over February’s monetary policy action. Meanwhile, the commentary from Atlanta Fed bank president Raphael Bostic is full of information that will guide investors for further action. Fed policymaker sees no recession in CY2023 but has trimmed Gross Domestic Product (GDP) forecast dramatically to 1%. He believes that interest rates will have to stay high for a long time well into 2024″.

On the Swiss franc front, a decline in the Real Retail Sales (Nov) data on an annual basis is going to compel the Swiss National Bank (SNB) to keep monetary policy moderate. The economic data contracted by 1.3% while the street was expecting an expansion of 3.0%.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.9212 at the time of writing. Pair opened at 0.9277 and is trading with a change of -0.7 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.9297, 50 SMA 0.9474, 100 SMA @ 0.9644 and 200 SMA @ 0.9645.

The previous day high was 0.941 while the previous day low was 0.927. The daily 38.2% Fib levels comes at 0.9324, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9356, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.9228, 0.918, 0.9089
• Pivot resistance is noted at 0.9367, 0.9458, 0.9506

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