#USDCHF @ 0.90203 has slipped below 0.9030 as Fed policymakers expect a quick softening of US Inflation. (Pivot Orderbook analysis)

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• USD/CHF has slipped below 0.9030 as Fed policymakers expect a quick softening of US Inflation.
• S&P500 futures are showing lackluster moves as investors are anxious ahead of the quarterly result season.
• Switzerland’s parliament failed to approve the 109 billion Swiss francs of financial guarantees used to rescue Credit Suisse.

The pair currently trades last at 0.90203.

The previous day high was 0.9098 while the previous day low was 0.9028. The daily 38.2% Fib levels comes at 0.9055, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9071, expected to provide resistance.

The USD/CHF pair has extended its downside below 0.9030 in the Asian session. The downside in the Swiss Franc asset has stretched as Federal Reserve (Fed) policymakers are anticipating a decent softening of the United States Consumer Price Index (CPI) this year.

This has weighed heavily on the US Dollar Index (DXY) as it is declining towards the crucial support of 102.00. The quick softening of US inflation has strengthened the odds of rate cuts by the Fed this year. The commentary from Minneapolis Fed Bank President Neel Kashkari that inflation will be at the middle 3% by end of this year, closer to 2% next year has weakened the appeal for the USD Index.

For current guidance, US inflation (March) data will be keenly watched. Analysts at NBF expect “The energy component may have had a negative impact on the headline index as prices likely fell in both the gasoline and natural gas segment. Expected gains for shelter and used vehicles could still result in a 0.2% monthly increase in headline prices. The core index, for its part, could have increased 0.4% MoM, which would translate into a one-tenth increase in the annual rate to 5.6%.”

Meanwhile, S&P500 futures are showing lackluster moves as investors are anxious ahead of the quarterly result season, portraying mildly positive market sentiment. The street is anticipating a contraction in overall profits to be reported by S&P500 amid higher interest rates and tight credit conditions by US commercial banks.

On the Swiss Franc front, Switzerland’s parliament failed to approve the 109 billion Swiss francs ($120.5 billion) of financial guarantees used to rescue Credit Suisse last month, in a first-round vote that was largely symbolic given the state had committed the funds, as reported by Reuters. As Switzerland’s upper house had already approved the rescue, the two chambers of the legislative body will vote again on Wednesday.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.9024 at the time of writing. Pair opened at 0.9033 and is trading with a change of -0.1 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.9162, 50 SMA 0.9231, 100 SMA @ 0.9267 and 200 SMA @ 0.9501.

The previous day high was 0.9098 while the previous day low was 0.9028. The daily 38.2% Fib levels comes at 0.9055, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9071, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.9008, 0.8983, 0.8938
• Pivot resistance is noted at 0.9078, 0.9123, 0.9148

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