#USDCHF @ 0.99477 An H&S formation indicates that a bearish reversal is on its way. (Pivot Orderbook analysis)

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• An H&S formation indicates that a bearish reversal is on its way.
• A death cross by the 50-and 200-EMA may strengthen the odds of a bearish reversal.
• The RSI (14) has shifted into the bearish range of 20.00-40.00, which adds to the downside filters.

The pair currently trades last at 0.99477.

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.

The USD/CHF pair is hovering around the immediate support of 0.9940 in the early Tokyo session. Earlier, the asset witnessed a steep decline after surrendering the psychological support of 1.0000. Rising optimism in market spirit resulted in a significant decline in safe-haven’s appeal.

The US dollar index (DXY) is oscillating below the crucial hurdle of 111.00 while the 10-year US Treasury yields nosedived to 4.10% amid an improved risk profile.

On an hourly scale, the asset has formed a Head and Shoulder (H&S) chart pattern, which indicates a bearish reversal after a downside break of the neckline placed near 0.9930. The chart pattern illustrates a tad longer inventory adjustment in which inventory shifts from institutional investors to retail participants.

The 50-and 200-period Exponential Moving Averages (EMAs) are on the verge of delivering a death cross at around 1.0000, which will add to the downside filters.

Also, the Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00, which indicates more weakness ahead.

Should the asset drops below the previous week’s low at 0.9922, the Swiss franc bulls will get stronger and will push the major to the downside towards October 7 low at 0.9878, followed by October 3 low at 0.9832.

On the contrary, the greenback bulls could regain strength if the asset Monday’s high at 1.0007, which will send the major toward October 13 high at 1.0074. A breach of the latter will send the asset toward Friday’s high at 1.0148.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.9951 at the time of writing. Pair opened at 1.0014 and is trading with a change of -0.63 % .

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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