#USDCHF @ 0.88751 drifts lower for the second straight day and is pressured by a combination of factors. (Pivot Orderbook analysis)
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]
- USD/CHF drifts lower for the second straight day and is pressured by a combination of factors.
- Fresh fears of the US banking crisis benefit the CHF and weigh on the pair amid a weaker USD.
- Investors now look to the US macro data for some impetus ahead of the crucial FOMC decision.
The pair currently trades last at 0.88751.
The previous day high was 0.8995 while the previous day low was 0.8924. The daily 38.2% Fib levels comes at 0.8951, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8968, expected to provide resistance.
The USD/CHF pair extends the overnight downfall from the vicinity of the 0.9000 psychological mark, or a nearly two-week high and remains under heavy selling pressure for the second successive day on Wednesday. The downward trajectory remains uninterrupted through the first half of the European session and drags spot prices to a one-week low, around the 0.8875 region in the last hour.
Concerns that several other regional US lenders were facing solvency issues fuel worries about a full-blown banking crisis and boost demand for traditional safe-haven Swiss Franc (CHF). Apart from this, the ongoing US Dollar (USD) retracement slide from a three-week high touched on Tuesday further contributes to the offered tone surrounding the USD/CHF pair. The anti-risk flow, along with the uncertainty over the Federal Reserve’s (Fed) rate hike path and worries about a US debt default, keep the US Treasury bond yields depressed and continue to weigh on the Greenback.
The US central bank is widely expected to deliver a 25 bps lift-off at the end of a two-day policy meeting this Wednesday. The US Job Openings and Labor Turnover Survey (JOLTS) released on Tuesday, meanwhile, indicated that the ultra-tight US job market is loosening, which could put less pressure on inflation and allow the Fed to soften its hawkish stance. That said, the CPI in the US is still trending well above the central bank’s target range and support prospects for further policy tightening. Hence, the focus will remain glued to the highly-anticipated FOMC decision.
Apart from this, the accompanying monetary policy statement and Fed Chair Jerome Powell’s comments at the post-meeting press conference will be scrutinized for clues about the policy outlook. This, in turn, will influence the near-term USD price dynamics and provide a fresh directional impetus to the USD/CHF pair. Heading into the key central bank event risk, traders on Wednesday will take cues from the US economic docket, highlighting the release of the ADP report on private-sector employment and the ISM Services PMI, for short-term opportunities.
Technical Levels: Supports and Resistances
USDCHF currently trading at 0.8879 at the time of writing. Pair opened at 0.8932 and is trading with a change of -0.59 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 0.8879 |
| 1 | Today Daily Change | -0.0053 |
| 2 | Today Daily Change % | -0.5900 |
| 3 | Today daily open | 0.8932 |
The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.8967, 50 SMA 0.9145, 100 SMA @ 0.9196 and 200 SMA @ 0.9441.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 0.8967 |
| 1 | Daily SMA50 | 0.9145 |
| 2 | Daily SMA100 | 0.9196 |
| 3 | Daily SMA200 | 0.9441 |
The previous day high was 0.8995 while the previous day low was 0.8924. The daily 38.2% Fib levels comes at 0.8951, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8968, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 0.8905, 0.8879, 0.8834
- Pivot resistance is noted at 0.8977, 0.9021, 0.9048
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 0.8995 |
| Previous Daily Low | 0.8924 |
| Previous Weekly High | 0.8976 |
| Previous Weekly Low | 0.8852 |
| Previous Monthly High | 0.9198 |
| Previous Monthly Low | 0.8852 |
| Daily Fibonacci 38.2% | 0.8951 |
| Daily Fibonacci 61.8% | 0.8968 |
| Daily Pivot Point S1 | 0.8905 |
| Daily Pivot Point S2 | 0.8879 |
| Daily Pivot Point S3 | 0.8834 |
| Daily Pivot Point R1 | 0.8977 |
| Daily Pivot Point R2 | 0.9021 |
| Daily Pivot Point R3 | 0.9048 |
[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group
