#USDCHF @ 0.89380 is aiming to recapture the critical resistance of 0.9000 as Fed policymakers are convinced of more rate hikes. (Pivot Orderbook analysis)

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• USD/CHF is aiming to recapture the critical resistance of 0.9000 as Fed policymakers are convinced of more rate hikes.
• S&P500 futures have recovered the majority of losses reported on Friday, portraying a recovery in investors’ risk appetite.
• Swiss inflation is expected to get arrested sooner by the SNB as banks have tightened their credit conditions after the collapse of Credit Suisse.

The pair currently trades last at 0.89380.

The previous day high was 0.8959 while the previous day low was 0.8867. The daily 38.2% Fib levels comes at 0.8924, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8902, expected to provide support.

The USD/CHF pair has resumed its upside journey after a minor correction to near 0.8940 in the early Asian session. The Swiss Franc asset has rebounded and has resumed its upside journey towards the round-level resistance of 0.9000. The major is following the footprints of the US Dollar Index (DXY). The latter has regained traction after a minor downside as the Federal Reserve (Fed) is ignoring the risk of a recession in the United States economy and is confident on track to hiking rates further.

S&P500 futures have recovered the majority of losses reported on Friday, portraying a recovery in the risk appetite of the market participants. The 500-stock basket futures have rebounded as investors are anticipating a decent quarterly result season as the impact of higher rates from the Fed would have been offset by lower gasoline prices.

The USD Index is aiming to recapture Friday’s high of 101.75 as Fed policymakers are convinced that one more rate hike is on the table. Atlanta Fed President Raphael Bostic, meanwhile, said one more quarter-percentage-point interest rate hike can allow the Fed to end its tightening cycle with some confidence that inflation will steadily return to its 2% target.

Also, Fed Governor Christopher Waller said on Friday that despite a year of aggressive rate increases, U.S. central bankers “haven’t made much progress” in returning inflation to their 2% target and need to move rates higher still.

On the Swiss Franc front, Swiss inflation is expected to get arrested sooner by the Swiss National Bank (SNB) as commercial banks have tightened their credit disbursing conditions after the collapse of Credit Suisse.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.8948 at the time of writing. Pair opened at 0.8937 and is trading with a change of 0.12 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.9107, 50 SMA 0.9217, 100 SMA @ 0.9252 and 200 SMA @ 0.9489.

The previous day high was 0.8959 while the previous day low was 0.8867. The daily 38.2% Fib levels comes at 0.8924, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8902, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.8883, 0.8829, 0.8791
• Pivot resistance is noted at 0.8975, 0.9013, 0.9067

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