The currency pair USDCHF, trading at 0.89715, is currently consolidating below 0.9000 level. The market attention has now turned towards the policies of the Swiss National Bank and the upcoming testimony of Powell.

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• USD/CHF is consolidating below 0.9000 as the focus shifts to SNB policy and Powell’s testimony.

The pair currently trades last at 0.89715.

The previous day high was 0.9001 while the previous day low was 0.8952. The daily 38.2% Fib levels comes at 0.8982, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8971, expected to provide support.

The USD/CHF pair is consistently oscillating in a narrow range below the psychological resistance of 0.9000 in the European session. The Swiss Franc asset is showing a subdued performance as the upside seems capped due to non-directional performance by the US Dollar Index (DXY) and expectations of an interest rate hike by the Swiss National Bank (SNB).

S&P500 futures have turned negative again as investors are turning cautious ahead of Federal Reserve (Fed) chair Jerome Powell’s testimony. US equities are expected to remain volatile as a continuation of hawkish guidance from the Fed would accelerate fears of recession.

The US Dollar Index (DXY) is displaying topsy-turvy moves around 102.60. Economists at ING believe the first week of July is when we’ll get the most important set of data releases in the United States, so Powell’s words can determine whether DXY will end the quarter above or below the 102.00 mark.

Contrary to the USD Index, US Treasury yields have not lost their resilience. The 10-year US Treasury yields have climbed to near 3.76%.

On the Swiss Franc front, the interest rate decision by the SNB will be in focus. Among G10 economies, the Swiss economy is operating at the lowest inflation levels, recorded at 2.2% in May. SNB Chairman Thomas J. Jordan is expected to raise interest rates by 25 basis points (bps) to 1.75%. Reuters reported SNB Jordan cited that “It’s really important to bring Swiss inflation to a level of price stability,” He further added it would not be a good idea to wait for inflation to rise and then raise interest rates. “When inflation remains under 2% for a long time, we don’t have a problem,”

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.8973 at the time of writing. Pair opened at 0.8978 and is trading with a change of -0.06 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.9036, 50 SMA 0.8979, 100 SMA @ 0.9105 and 200 SMA @ 0.9333.

The previous day high was 0.9001 while the previous day low was 0.8952. The daily 38.2% Fib levels comes at 0.8982, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8971, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.8953, 0.8928, 0.8905
• Pivot resistance is noted at 0.9002, 0.9026, 0.9051

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