It is anticipated that #USDCHF @ 0.89086 will continue to decline below 0.8900 due to a positive market sentiment.

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• USD/CHF is expected to resume its downside journey below 0.8900 amid an upbeat market mood.

The pair currently trades last at 0.89086.

The previous day high was 0.9056 while the previous day low was 0.8907. The daily 38.2% Fib levels comes at 0.8964, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8999, expected to provide resistance.

The USD/CHF pair is demonstrating topsy-turvy moves above the round-level cushion of 0.8900 in the European session. The Swiss Franc asset looks delicate above the aforementioned support as the appeal for the US Dollar Index (DXY) has weakened due to the cheerful market mood.

S&P500 futures are trading in positive territory after recovering losses generated in the Asian session. The risk-sensitive assets have hogged the limelight as investors are hoping that the Federal Reserve (Fed) might not stand by its promise of two more rate hikes due to the worsening economic outlook.

US labor market conditions are easing at a decent pace as initial jobless claims are landing higher than expectations consistently from the past four weeks. Factory activity is in a contraction phase for the past seven months and the service sector is showing a mild expansion. Apart from them, factory gate prices have softened dramatically as the demand for durables is facing the heat of high inflation.

This would sharply impact the USD Index and its broader outlook. Economists at TD Securities cited we continue to think that inflation matters more than growth, showing that policymakers won’t actually push back on growth if it accompanies further disinflation. That keeps us biased to fade USD rallies ahead of the July meeting unless we start to see a clear string of upside US data surprises.

On the Swiss Franc front, investors are shifting their focus toward the interest rate decision by the Swiss National Bank (SNB), which will be announced next week. SNB Chairman Thomas J. Jordan believes that this is no better waiting for inflation to increase first. So a hawkish stance is widely anticipated from the SNB.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.8915 at the time of writing. Pair opened at 0.8919 and is trading with a change of -0.04 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.9042, 50 SMA 0.8985, 100 SMA @ 0.9112 and 200 SMA @ 0.9343.

The previous day high was 0.9056 while the previous day low was 0.8907. The daily 38.2% Fib levels comes at 0.8964, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8999, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8865, 0.8812, 0.8716
• Pivot resistance is noted at 0.9014, 0.911, 0.9163

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