#USDCHF @ 0.90383 extends Friday’s pullback from seven-week high, remains pressured around intraday low. (Pivot Orderbook analysis)

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• USD/CHF extends Friday’s pullback from seven-week high, remains pressured around intraday low.
• Market’s cautious optimism, positioning before the key data weigh on US Dollar.
• Swiss Q1 GDP, US CB Consumer Confidence will decorate calendar.
• Headlines surrounding US debt-ceiling extension, full markets’ reaction to shift in risk catalysts will be the key.

The pair currently trades last at 0.90383.

The previous day high was 0.9062 while the previous day low was 0.9028. The daily 38.2% Fib levels comes at 0.9041, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9049, expected to provide resistance.

USD/CHF drops for the third consecutive day after refreshing a multi-week high as it prints mild losses around 0.9035 amid early Tuesday morning in Europe.

Swiss Franc (CHF) buyers cheer the broad US Dollar pullback amid mildly upbeat sentiment. Also likely to have favored the pair sellers could be the consolidation ahead of today’s key Swiss Gross Domestic Product (GDP) data for the first quarter (Q1) of 2023, as well as the US Conference Board’s (CB) Consumer Confidence for May.

That said, the US Dollar Index (DXY) reverses from a six-month-old resistance line to print the first daily loss in seven around 104.10 as firmer sentiment weigh on the US Dollar’s haven demand.

Underpinning the market’s cautious optimism is the return of the traders in major bourses after a long weekend and then the reaction to the US policymakers’ deal on the debt-ceiling extension to January 2025. Though, fears emanating from some of the US policymakers, mostly Republicans, are against the compromises made to their previous demands to reach the deal. The policymakers also show readiness to challenge the agreement in the House, as well as in the Senate, which in turn prods the market’s previous risk-on mood and keeps the US Dollar on the front foot.

“A handful of hard-right Republican lawmakers said on Monday they would oppose a deal to raise the United States’ $31.4 trillion debt ceiling, in a sign that the bipartisan agreement could face a rocky path through Congress before the US runs out of money next week,” said Reuters.

While portraying the mood, the S&500 Futures print mild gains around 4,220 after retreating from the yearly high the previous day whereas the US Treasury yields drop by the press time.

Looking forward, Swiss Q1 GDP, expected to improve to 0.1% QoQ versus 0.0% prior, will offer immediate directions to the USD/CHF pair ahead of the US CB Consumer Confidence for May, expected to ease from 101.30 prior readings. Above all, Wednesday’s US House voting on the debt-ceiling agreement and the Senate’s approval for the same before June 05, as well as Friday’s US jobs report, become the key for the USD/CHF pair traders to watch for clear directions.

A downside break of a three-week-old ascending support line, now immediate resistance near 0.9045, directs USD/CHF bears toward the 50-DMA level surrounding the 0.9000 threshold.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.9034 at the time of writing. Pair opened at 0.9045 and is trading with a change of -0.12% % .

The pair is trading above its 20 Daily moving average @ 0.8965, above its 50 Daily moving average @ 0.9009 , below its 100 Daily moving average @ 0.9135 and below its 200 Daily moving average @ 0.9387

The previous day high was 0.9062 while the previous day low was 0.9028. The daily 38.2% Fib levels comes at 0.9041, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9049, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.9028, 0.901, 0.8993
• Pivot resistance is noted at 0.9062, 0.9079, 0.9096

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