#USDCHF @ 0.88286 has faced an intense sell-off as the Fed delivered neutral interest rate guidance. (Pivot Orderbook analysis)

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• USD/CHF has faced an intense sell-off as the Fed delivered neutral interest rate guidance.
• The USD Index looks vulnerable above 101.07 as fears of the US debt ceiling issue are accelerating swiftly.
• US Treasury has already conveyed that it will be out of funds by early June.

The pair currently trades last at 0.88286.

The previous day high was 0.8932 while the previous day low was 0.8833. The daily 38.2% Fib levels comes at 0.8871, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8894, expected to provide resistance.

The USD/CHF pair witnessed massive offers from investors on Wednesday as the Federal Reserve (Fed) delivered neutral guidance after hiking interest rates by 25 basis points (bps) to 5.00-5.25%. The Swiss Franc asset has refreshed its two-year low at 0.8820 and is expected to display more downside as the US Dollar Index (DXY) is failing to show evidence of getting confident support.

The USD Index looks vulnerable above its crucial support of 101.07 as fears of the US debt ceiling issue are accelerating swiftly. The White House is not ready for negotiations over the cost of the President’s spending initiatives. US Treasury has already conveyed that it will be out of funds by early June, which would cost 8.3 million jobs and a 6.1% reduction in economic output reported by the White House Council of Economic Advisors.

Meanwhile, S&P500 futures have recovered their entire losses and has turned positive, portraying a recovery in the risk appetite of investors.

USD/CHF is declining towards the crucial support plotted horizontally from 08 January 2021 low at 0.8758. The supply area for US Dollar bulls is placed in a range of 0.8984-0.9000 range on a weekly scale. The 10-period Exponential Moving Average (EMA) at 0.9041 is consistently acting as a barricade for the US Dollar bulls.

The Relative Strength Index (RSI) (14) is oscillating in the bearish range of 20.00-40.00, conveying that the downside momentum is extremely solid.

A breakdown of the intraday low at 0.8820 will drag the asset toward 01 January 201 low at 0.8794 followed by January 2021 low at 0.8758.

In an alternate scenario, a confident move above the psychological resistance at 0.9000, US Dollar bulls will drive the asset towards April 07 low and high at 0.9034 and 0.9082 respectively.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.8827 at the time of writing. Pair opened at 0.8838 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 @ 0.8955, 50 SMA 0.9136, 100 SMA @ 0.9192 and 200 SMA @ 0.9437.

The previous day high was 0.8932 while the previous day low was 0.8833. The daily 38.2% Fib levels comes at 0.8871, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8894, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8803, 0.8769, 0.8704
• Pivot resistance is noted at 0.8902, 0.8967, 0.9001

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