#USDCHF @ 0.96087 US dollar jumps across the board after August US CPI numbers. (Pivot Orderbook analysis)

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• US dollar jumps across the board after August US CPI numbers.
• Swiss franc prints fresh highs versus the euro and pound.
• USD/CHF rebounds at the 200-day SMA, having best day in weeks.

The pair currently trades last at 0.96087.

The previous day high was 0.961 while the previous day low was 0.9509. The daily 38.2% Fib levels comes at 0.9548, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9572, expected to provide support.

The USD/CHF rose sharply from the lowest level in four weeks to the highest since Friday following the release of US inflation data. The pair climbed from 0.9477 to 0.9632. It is hovering around 0.9600/10, having the best day in weeks.

The US dollar dropped during the previous days amid expectations of a decline in the August CPI, but the numbers showed a different story. The CPI rose 0.1% in August and reinforced expectations of an aggressive Federal Reserve boosting the dollar and triggering a Treasury sell-off.

The US 10-year yield jumped to 3.47%, reaching the highest level since June and the 2-year yield rose to 3.74%, a fresh cycle high. The DXY rebounded from weekly lows under 108.00 to 109.55; it is up by more than 1%.

Despite the sharp slide versus the dollar, the Swiss franc rose against the euro and the pound amid risk aversion. The EUR/CHF trades at 0.9610, the lowest since late August, while GBP/CHF is at historic lows at 1.1070.

More US inflation numbers are due on Wednesday. Next week is the FOMC meeting. A 75 basis points rate hike is already priced in. “In our view, the August CPI report supports a continued aggressive effort by the Fed to restrict its inflation-adjusted policy stance”, explained analysts at TD Securities. They forecast a 75 bps rate hike next week and also in November.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.9607 at the time of writing. Pair opened at 0.9535 and is trading with a change of 0.76 % .

The pair is trading below its 20 Daily moving average @ 0.9674, below its 50 Daily moving average @ 0.965 , below its 100 Daily moving average @ 0.9693 and above its 200 Daily moving average @ 0.9476

The previous day high was 0.961 while the previous day low was 0.9509. The daily 38.2% Fib levels comes at 0.9548, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9572, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.9493, 0.9451, 0.9392
• Pivot resistance is noted at 0.9594, 0.9652, 0.9694

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