#USDCHF @ 0.91694 has dropped below the 0.9160 support as Fed has come closer to the terminal rate. (Pivot Orderbook analysis)

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• USD/CHF has dropped below the 0.9160 support as Fed has come closer to the terminal rate.
• Fed Powell remained softer on interest rate guidance citing “some additional policy firming may be appropriate”.
• The interest rate decision for SNB Jordan would be incredibly difficult, which is still dealing with the Credit Suisse mess.

The pair currently trades last at 0.91694.

The previous day high was 0.9246 while the previous day low was 0.9147. The daily 38.2% Fib levels comes at 0.9185, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9208, expected to provide resistance.

The USD/CHF pair has slipped below the immediate support of 0.9160 in the Asian session. The Swiss franc asset has retreated after a recovery attempt to near 0.9180 as the commentary from Federal Reserve (Fed) chair Jerome Powell in his monetary policy statement indicates that the central bank is close to reaching the terminal rate.

After hiking interest rates by 25 basis points (bps) consecutively to 4.75-5.00%, Fed Powell remained softer on interest rate guidance citing “some additional policy firming may be appropriate”.

Dovish guidance on interest rates has weighed heavily on the US Dollar Index (DXY). The USD Index has dropped after a short-lived recovery and is expected to continue its downside journey.

S&P500 futures are showing some gains after a sell-off on Wednesday, however, the appeal for US equities is still weak. Investors seem dissatisfied from US Treasury Secretary Janet Yellen’s commentary that the government “is not considering insuring all uninsured bank deposits,” The rollback of assurance has receded confidence among investors.

Meanwhile, the demand for US government bonds has soared as tight credit conditions from the banks for households and businesses after the collapse of Silicon Valley Bank (SVB) and Signature Bank would result in cooling demand and inflation.

Thursday’s session is going to remain extremely volatile as investors are awaiting the interest rate decision from the Swiss National Bank (SNB). Analysts from ING cited “Our baseline scenario remains a 50 bps rate hike, but the probability of this has seriously diminished, and neither the status quo nor a 25 bps hike can be ruled out. Unlike the ECB, the SNB has not pre-announced anything, so it is freer in its choices.”

The decision is likely to be incredibly difficult for SNB Chairman Thomas J. Jordan, which is still managing the Credit Suisse mess.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.9158 at the time of writing. Pair opened at 0.9174 and is trading with a change of -0.17 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.9312, 50 SMA 0.9257, 100 SMA @ 0.9343 and 200 SMA @ 0.9536.

The previous day high was 0.9246 while the previous day low was 0.9147. The daily 38.2% Fib levels comes at 0.9185, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9208, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.9132, 0.909, 0.9034
• Pivot resistance is noted at 0.9231, 0.9288, 0.9329

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