#USDCHF @ 1.00512 is aiming to overstep the 1.0060 hurdle amid a dismal market mood. (Pivot Orderbook analysis)

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• USD/CHF is aiming to overstep the 1.0060 hurdle amid a dismal market mood.
• Fed’s Beige Book has stated that price pressures are still elevated while the labor market is moderating.
• The 10-year US Treasury yields have refreshed their 14-year high at 4.14%.

The pair currently trades last at 1.00512.

The previous day high was 0.9979 while the previous day low was 0.9919. The daily 38.2% Fib levels comes at 0.9942, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9956, expected to provide support.

The USD/CHF pair has terminated its minor correction from 1.0063 in early Asia and has resumed its upside journey. Earlier, the asset displayed a juggernaut rally to near 1.0063 as the risk-on profile lost its traction.

A mild sell-off in S&P500 after a two-day winning spell trimmed investors’ risk appetite and improved the appeal for safe-haven assets. The US dollar index (DXY) is oscillating marginally below the immediate hurdle of 113.00 and is preparing for a break of the same. Also, the 10-year US Treasury yields have refreshed their 14-year high at 4.14% amid soaring bets for a bigger rate hike by the Federal Reserve (Fed).

On the Swiss franc front, investors are awaiting the release of the Trade Balance data. The economic data is expected to improve to 3,558M vs. the prior release of 3,424M.

The roadmap provided by St. Louis Fed Bank President James Bullard indicates that the central bank will remain hawkish for a longer period. Fed policymaker believed that the central bank is expected to lift rates by another 75 basis points (bps) when it meets on November 1-2, with an additional 50 or 75 bps increase also likely in December. He further added that the Fed needs to visit the right rate level first and then will approach data dependency.

Meanwhile, concerns for price pressures are still solid as the release of the Fed’s Beige Book has stated that price growth remained elevated although some easing was noted across several districts. Inputs for firms have become more expensive while some declines have been noted in the cost of fuel and freight. The labor demand is moderate as some firms are reluctant to add more payrolls on expectations of an economic slowdown.

Technical Levels: Supports and Resistances

USDCHF currently trading at 1.0052 at the time of writing. Pair opened at 0.9945 and is trading with a change of 1.08 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.989, 50 SMA 0.9736, 100 SMA @ 0.9707 and 200 SMA @ 0.9558.

The previous day high was 0.9979 while the previous day low was 0.9919. The daily 38.2% Fib levels comes at 0.9942, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9956, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.9917, 0.9888, 0.9857
• Pivot resistance is noted at 0.9976, 1.0008, 1.0036

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