#USDCHF @ 0.99620 The dollar dives below parity, gives away previous gains. (Pivot Orderbook analysis)

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• The dollar dives below parity, gives away previous gains.
• Downbeat US data spur hopes of a slower Fed tightening pace.
• USD/CHF: Further depreciation below 0.9950 might increase negative pressure.

The pair currently trades last at 0.99620.

The previous day high was 1.0032 while the previous day low was 0.9944. The daily 38.2% Fib levels comes at 0.9998, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9978, expected to provide resistance.

Greenback’s recovery from the 0.9940 area has been capped at 1.0030 on Tuesday’s US trading session, as the pair gave away gains and retreated to the mid-range of the 0.99s.

The US dollar is dropping sharply across the board as a set of downbeat US indicators has increased concerns that the Federal Reserve’s fast tightening pace might be damaging economic growth.

US housing prices contracted at a 0.7% pace in August, beyond the -0.3% expected and consumer confidence deteriorated for the second consecutive month in October. On Monday, the S&P PMIs reflected a further contraction in business activity. These figures are putting pressure on the Fed to consider shorter rate hikes in the coming months.

Hopes of Fed easing have boosted risk appetite. US stock markets expanded gains after a lackluster opening and Treasury bond yields dropped sharply. The US dollar, as a result, lost ground across the board.

The pair is now trading right above the 100-period SMA in the four-hour chart, at 0.9950, below here, bears might increase their pressure, pushing the pair towards 0.9780 (Oct. 4 and 6 lows) and 0.9740 (Sept. 30 low).

On the upside, October 24 high at 1.0035 should be cleared to aim toward 1.0065/75 (October 13 and 14 highs). Confirmation above that level would set the pair at three-year highs, aiming for May 20, 2019 high.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.9969 at the time of writing. Pair opened at 1.0014 and is trading with a change of -0.45 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.9934, 50 SMA 0.9783, 100 SMA @ 0.9722 and 200 SMA @ 0.9576.

The previous day high was 1.0032 while the previous day low was 0.9944. The daily 38.2% Fib levels comes at 0.9998, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9978, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.9962, 0.9909, 0.9874
• Pivot resistance is noted at 1.005, 1.0085, 1.0137

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