#USDCHF @ 0.90207 is facing fragile barricades around 0.9040 amid a marginal correction in the USD Index. (Pivot Orderbook analysis)

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• USD/CHF is facing fragile barricades around 0.9040 amid a marginal correction in the USD Index.
• Market mood is cheerful on hopes that the Fed would skip hiking interest rates on Wednesday.
• SNB Jordan believes that the central bank should not wait for increasing inflation but should act now by raising interest rates.

The pair currently trades last at 0.90207.

The previous day high was 0.9039 while the previous day low was 0.8984. The daily 38.2% Fib levels comes at 0.9018, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9005, expected to provide support.

The USD/CHF pair has faced delicate barricades around 0.9040 in the European session. A volatile action from the Swiss Franc asset cannot be ruled out as investors are awaiting the release of the United States Consumer Price Index (CPI) for further guidance.

S&P500 futures have added significant gains in London, portraying a cheerful market mood. US equities are attracting significant bets on hopes that the Federal Reserve (Fed) would skip hiking interest rates on Wednesday.

Former President of Boston Fed Bank, Eric Rosengren, tweeted early Monday that “Those projections are likely to show a hawkish dot plot reflecting still sticky inflation and tighter labor markets – tighter than many had previously expected.”

The US Dollar Index (DXY) has reported a mild correction from 103.70 as investors are preparing for Tuesday’s inflation data. Headline US inflation is expected to decelerate sharply as oil prices have corrected dramatically. While core CPI that strips off oil and food prices is expected to remain persistent.

No doubt, US labor market conditions have started easing now and the economy has also loosened its resilience. In spite, the Fed could raise interest rates to improve conviction that inflation should reach 2%.

Meanwhile, the Swiss Franc is expected to show some strength as the Swiss National Bank (SNB) is expected to raise interest rates further. SNB Chairman Thomas J. Jordan believes that the central bank should not wait for increasing inflation but should act now by raising interest rates as the impact of higher interest rates would be lower than of stubborn inflation.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.9032 at the time of writing. Pair opened at 0.9033 and is trading with a change of -0.01 % .

The pair is trading below its 20 Daily moving average @ 0.9036, above its 50 Daily moving average @ 0.8989 , below its 100 Daily moving average @ 0.912 and below its 200 Daily moving average @ 0.9358

The previous day high was 0.9039 while the previous day low was 0.8984. The daily 38.2% Fib levels comes at 0.9018, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9005, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.8998, 0.8964, 0.8943
• Pivot resistance is noted at 0.9053, 0.9074, 0.9108

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