#USDCHF @ 0.97335 witnessed selling for the second straight day and dropped to over a one-week low. (Pivot Orderbook analysis)

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• USD/CHF witnessed selling for the second straight day and dropped to over a one-week low.
• The downfall could be solely attributed to some technical selling amid subdued USD demand.
• Aggressive Fed rate hike bets to underpin the USD and limit losses ahead of Powell’s speech.

The pair currently trades last at 0.97335.

The previous day high was 0.987 while the previous day low was 0.9761. The daily 38.2% Fib levels comes at 0.9803, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9828, expected to provide resistance.

The USD/CHF pair extends the previous day’s retracement slide from the highest level since July 14 and edges lower for the second straight day on Thursday. This also marks the fourth day of a negative move in the previous five and drags spot prices to over a one-week low, below mid-0.700s during the first half of the European session.

The overnight failure to find acceptance above mid-0.9800s turns out to be a key factor prompting some technical selling around the USD/CHF pair. A subdued US dollar price action also does little to lend any support. That said, the ongoing downfall lacks any obvious fundamental catalyst and is more likely to remain limited, at least for the time being.

Expectations that the Federal Reserve will stick to its aggressive policy tightening path should act as a tailwind for the buck and lend some support to the USD/CHF pair. This makes it prudent to wait for strong follow-through selling before confirming that the recent bullish momentum witnessed over the past month or so has run out of steam already.

Investors might also prefer to move to the sidelines and wait for a fresh catalyst from Fed Chair Jerome Powell’s speech, due later during the early North American session. Powell’s remarks will be scrutinized for clues about the central bank’s policy outlook and reinforce bets for a supersized 75 bps rate hike at the next FOMC meeting on September 20-21.

This, in turn, will play a key role in influencing the USD price dynamics and provide a fresh impetus to the USD/CHF pair. Apart from this, the broader market risk sentiment could drive demand for the safe-haven Swiss franc and further contribute to producing short-term trading opportunities around the major.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.9743 at the time of writing. Pair opened at 0.9764 and is trading with a change of -0.22 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.9646, 50 SMA 0.9648, 100 SMA @ 0.9692 and 200 SMA @ 0.947.

The previous day high was 0.987 while the previous day low was 0.9761. The daily 38.2% Fib levels comes at 0.9803, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9828, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.9727, 0.969, 0.9618
• Pivot resistance is noted at 0.9835, 0.9907, 0.9944

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