#USDCHF @ 0.98482 prepares for a break above 0.9850 as DXY rebounds amid a vulnerable market mood (Pivot Orderbook analysis)

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The pair currently trades last at 0.98482.

The previous day high was 0.984 while the previous day low was 0.9756. The daily 38.2% Fib levels comes at 0.9808, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9788, expected to provide support.

The USD/CHF pair is hovering around the immediate hurdle of 0.9860 in the Tokyo session as a pullback towards 0.9755 has concluded and upside momentum has resumed. The asset is preparing for a break above 0.9850 as the US dollar index (DXY) has rebounded firmly after a minute drop to near 113.62.

The DXY is expected to recapture its fresh two-decade high at 114.52 as the market mood is turning vulnerable to Russia’s nuclear attack warning and soaring odds of a global recession. In retaliation to western sanctions, Russian leader Vladimir Putin has warned of a nuclear attack, which has spooked the market sentiment and has forced market participants to channel liquidity into the DXY.

Apart from that, mixed PMI numbers from global countries have soared the odds of a global recession. A mix of higher inflation and accelerating interest rates is forcing institutional investors to drop their growth forecasts for western leaders. Meanwhile, S&P Global PMI numbers for the US economy remained firmer. The Manufacturing PMI landed at 51.8 vs. The consensus of 51.1. While, the Services PMI remained upbeat, the data released at 49.4, significantly higher than the estimates of 45.0.

On the Swiss franc front, a hawkish stance on interest rates by the Swiss National Bank (SNB) failed to support the Swiss franc bulls. SNB Chairman Thomas J. Jordan announced a rate hike by 75 basis points (bps). It is worth noting that the SNB organizes monetary policy once every quarter, therefore, the central bank has fewer chances of accelerating interest rates. So the rate hike should be a full percent rate hike.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.9849 at the time of writing. Pair opened at 0.9814 and is trading with a change of 0.36 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.9706, 50 SMA 0.9632, 100 SMA @ 0.9686 and 200 SMA @ 0.9496.

The previous day high was 0.984 while the previous day low was 0.9756. The daily 38.2% Fib levels comes at 0.9808, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9788, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.9766, 0.9719, 0.9682
• Pivot resistance is noted at 0.985, 0.9887, 0.9934

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