#USDCHF @ 0.96442 is oscillating around 0.9650 as investors await Fed’s interest rate policy. (Pivot Orderbook analysis)

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• USD/CHF is oscillating around 0.9650 as investors await Fed’s interest rate policy.
• Labor market conditions and retail demand are supportive of a full percent rate hike by the Fed.
• A 75 bps rate hike by the SNB will shift the interest rates into a positive trajectory.

The pair currently trades last at 0.96442.

The previous day high was 0.9682 while the previous day low was 0.9623. The daily 38.2% Fib levels comes at 0.9646, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.966, expected to provide resistance.

The USD/CHF pair is displaying a balanced profile in a narrow range of 0.9625-0.9650 in the Tokyo session. The asset is expected to display a lackluster performance as the US dollar index (DXY) has turned subdued ahead of the monetary policy by the Federal Reserve (Fed). On a broader note, the asset has turned sideways after declining from 0.9680. A failed attempt to tap the two-week high at around 0.9700 pushed the asset lower.

It is worth noting that the DXY is displaying signs of momentum loss after a juggernaut rally. The DXY has been attempting to print a fresh two-week high above 110.30. However, the current structure indicates that the DXY will have to wait for more for the same as investors are looking to go light towards the mega event of monetary policy by the Fed.

As per the expectations, the Fed will announce a third consecutive rate hike by 75 basis points (bps). However, the Fed could push the rate with a 100 bps rate hike as labor market conditions and growth rate is highly supportive.

On the Swiss franc front, the interest rate decision from the Swiss National Bank (SNB) will also hog the limelight. The inflation rate in the Swiss region is rising at a modest pace and has landed at 3.5% in August 2022. Considering the market consensus, SNB Chairman Thomas J. Jordan will announce a rate hike by 75 basis points (bps), which will push the interest rates into the positive territory to 0.5%. The SNB interest rates will enter positive territory after a period of 10 years.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.9645 at the time of writing. Pair opened at 0.9643 and is trading with a change of 0.02 % .

The pair is trading below its 20 Daily moving average @ 0.9691, above its 50 Daily moving average @ 0.9635 , below its 100 Daily moving average @ 0.9688 and above its 200 Daily moving average @ 0.9489

The previous day high was 0.9682 while the previous day low was 0.9623. The daily 38.2% Fib levels comes at 0.9646, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.966, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.9617, 0.959, 0.9557
• Pivot resistance is noted at 0.9676, 0.9709, 0.9735

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