#USDCHF @ 0.97100 has slipped below the round-level support of 0.9700 amid a decline in the Swiss jobless rate. (Pivot Orderbook analysis)

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• USD/CHF has slipped below the round-level support of 0.9700 amid a decline in the Swiss jobless rate.
• The Fed is set to hike interest rates further at the cost of growth prospects.
• Next week, investors’ entire focus will remain on the US inflation data.

The pair currently trades last at 0.97100.

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 has displayed a perpendicular fall after surrendering the critical support of 0.9760 on Thursday. The asset has slipped below the round-level support of 0.9700 and is not displaying any sign of bullish reversal yet, therefore more weakness is on cards. The major turned bearish this week after multiple attempts of overstepping the crucial resistance of 0.9860. The downside move is expected to escalate further to near 0.9600.

It is worth noting that the decline in the USD/CHF pair is significantly higher than the decline in the mighty US dollar index (DXY). This indicates that the Swiss franc bulls have strengthened extremely amid a decline in Swiss Unemployment Rate data. On Thursday, the Swiss jobless rate landed at 2.1%, lower than expectations and the prior release of 2.2% on a monthly basis.

Meanwhile, the DXY is expected to deliver a surprise movement after a hawkish speech from Federal Reserve (Fed) chair Jerome Powell. Fed Powell’s O&A at the Cato Institute focused more on bringing price stability to the US economy. The inflation rate of 8.5% is huge and is firmly impacting households. Also, the Fed is prepared for softening demand as higher interest rates will squeeze out liquidity from the economy drastically.

Next week, the major trigger will be the release of the US Consumer Price Index (CPI) data. A decline is expected in the inflationary pressures led by soaring interest rates and declining gasoline prices. For July, the headline CPI landed at 8.5%.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.9697 at the time of writing. Pair opened at 0.9764 and is trading with a change of -0.69 % .

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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