#USDCHF @ 0.94517 is displaying back-and-forth moves around 0.9450 after sheer volatility. (Pivot Orderbook analysis)

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• USD/CHF is displaying back-and-forth moves around 0.9450 after sheer volatility.
• A slowdown in growth rate and labor demand, and a decline in October inflation support Fed’s less-hawkish commentary.
• The US NFP is expected to display weak job numbers considering cues from US ADP Employment.

The pair currently trades last at 0.94517.

The previous day high was 0.9546 while the previous day low was 0.946. The daily 38.2% Fib levels comes at 0.9513, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9493, expected to provide resistance.

The USD/CHF pair turned sideways around 0.9450 in the early Asian session. Federal Reserve (Fed)-inspired massacre in the asset was followed by a casual recovery from around 0.9430 and the asset has turned sideways now to ease sky-rocketing volatility.

The risk appetite is extremely solid as the commentary from Fed chair Jerome Powell has confirmed that policymakers will consider a lower rate hike for December monetary policy meeting.

The less-hawkish commentary from the Fed chair sent the US Dollar Index (DXY) on a downside swing to near 105.80. The USD Index has also shown a mild recovery to near 106.00, however, the downside bias has been cemented. A stellar run in S&P500 portrays a cheerful market mood.

Meanwhile, the US Treasury yields have witnessed a bloodbath as investors poured liquidity into US Treasury bonds. The 10-year US Treasury yields have dropped to 3.60%.

The decision of slowing down the current pace of the interest rate hike by the Fed is backed by a deceleration in the employment generation process, a slowdown in growth rate, and a surprise decline in October’s inflation, which have put the Fed in a position where rate hike pace could be eased. The foremost agenda of the Fed is to bring price stability but it is not appropriate to ‘Crash the economy and clean it afterward, cited by Fed Chair.

For further guidance, investors are shifting their focus toward the United States Nonfarm Payrolls (NFP) data, which will release on Friday. The official employment report is expected to display a weaker number considering cues from US Automatic Data Processing (ADP) Employment data, which has shown fresh addition of 127K jobs in November.

On the Swiss franc front, investors are keeping an eye on Consumer Price Index (CPI) data. The monthly annual CPI figures are seen unchanged at 0.1% and 3.0% respectively. The Swiss National Bank (SNB) Chairman Thomas J. Jordan is still in favor of an expansionary policy to keep up the economic prospects.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.944 at the time of writing. Pair opened at 0.954 and is trading with a change of -1.05 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.9629, 50 SMA 0.9803, 100 SMA @ 0.9719 and 200 SMA @ 0.9639.

The previous day high was 0.9546 while the previous day low was 0.946. The daily 38.2% Fib levels comes at 0.9513, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9493, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.9485, 0.943, 0.94
• Pivot resistance is noted at 0.957, 0.9601, 0.9656

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