#USDCHF @ 0.89179 has recovered sharply from 0.8900 after a corrective move. (Pivot Orderbook analysis)

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• USD/CHF has recovered sharply from 0.8900 after a corrective move.
• The risk-aversion theme in the overall market and pre-Fed policy anxiety improved safe-haven appeal for the US Dollar.
• An upbeat US Durable Goods Orders will indicate that US core inflation would be more persistent ahead.

The pair currently trades last at 0.89179.

The previous day high was 0.8928 while the previous day low was 0.8876. The daily 38.2% Fib levels comes at 0.8896, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8908, expected to provide support.

The USD/CHF pair has recovered its minor correction quickly after dropping to near the round-level support of 0.8900 in the early Asian session. The Swiss Franc asset showed a stellar recovery on Tuesday after a fresh two-year low of 0.8860. Ample bids for the US Dollar Index (DXY) also infused fresh blood into the Swiss Franc asset.

S&P500 futures recorded significant losses on Tuesday after upbeat earnings from Microsoft and Google failed to recede negative market sentiment. Also, quarterly earnings from First Republic Bank showed a sharp fall in customers’ deposits, which has forced the financial institution to rely on borrowings that will attract higher interest rates.

The risk-aversion theme in the overall market and pre-Federal Reserve (Fed) policy anxiety improved the safe-haven appeal for the US Dollar. The USD Index showed a perpendicular upside move and printed a two-day high of 101.95. A power-pack action is expected from the USD Index this week ahead of economic indicators.

Wednesday’s United States Durable Goods Orders data (March) is seen expanding by 0.8% against a contraction of 1.0%. The economic data indicates forward demand made to manufacturers for core goods. An upbeat Durable Goods demand data will make the core Consumer Price Index (CPI) more persistent ahead.

Apart from that, Thursday’s annualized Gross Domestic Product (GDP) data will be of utmost importance. The consensus indicates that GDP (Q1) declined to 2.0% from the former pace of 2.6%. A weaker GDP data might escalate fears of a slowdown in the US economy.

On the Swiss Franc front, ZEW Survey-Expectations (April) will be in focus. As per the estimates, business conditions will improve to -18.9 from the former release of -41.3. An occurrence of the same might support the Swiss Franc ahead.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.8918 at the time of writing. Pair opened at 0.8877 and is trading with a change of 0.46 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.9029, 50 SMA 0.9182, 100 SMA @ 0.9222 and 200 SMA @ 0.9463.

The previous day high was 0.8928 while the previous day low was 0.8876. The daily 38.2% Fib levels comes at 0.8896, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8908, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.8859, 0.8842, 0.8807
• Pivot resistance is noted at 0.8911, 0.8946, 0.8963

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