#USDCHF @ 0.92709 takes offers to reverse previous day’s bounce off 8.5-month low., @nehcap view: Limited downside expected (Pivot Orderbook analysis)

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• USD/CHF takes offers to reverse previous day’s bounce off 8.5-month low.
• Markets stabilize after global central banks portrayed a volatile day, allowing sellers to sneak in.
• Failure to cross support-turned-resistance directs bears towards three-week-old trend line support.
• Preliminary PMIs for December, risk catalysts will be important for fresh impulse.

The pair currently trades last at 0.92709.

The previous day high was 0.9317 while the previous day low was 0.9228. The daily 38.2% Fib levels comes at 0.9283, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9262, expected to provide support.

USD/CHF stays pressured around the intraday low near 0.9270 as it reverses the previous day’s rebound from a multi-day bottom during Friday’s sluggish Asian session.

The Swiss Franc (CHF) pair’s previous recovery could be linked to the market’s rush for the US Dollar in search for safety as major central banks, including the Swiss National Bank (SNB), announced rate hikes. Not only that, the policymakers’ readiness to keep the rate higher for longer also favored the US Dollar’s safe-haven demand.

Additionally, US President Joe Biden’s crackdown on Chinese IT companies added strength to the risk-off mood and propelled the USD/CHF prices.

That said, a lack of major data/events during the early Asian session joins the market’s consolidation after a big day to resume the USD/CHF pair’s downside. Additionally, the favoring the pair sellers is the technical pattern that could term Thursday’s recovery as a corrective bounce which could not clear important resistance.

Moving on, the first readings of December month activity numbers will be important for the USD/CHF pair traders for clear directions.

Technical analysis

A clear downside break of the monthly support line, followed by failure to cross the same during a corrective bounce, keeps the USD/CHF bears hopeful amid steady RSI (14) conditions.

That said, a downward-sloping support line from November 24, close to 0.9225, could restrict the short-term downside of the Swiss Franc (CHF) pair. Following that, a late March low near 0.9195 will be in focus.

Alternatively, recovery moves need to cross the support-turned-resistance, around 0.9300 by the press time, to retake control. Even so, the 50-SMA and the 100-SMA can challenge the buyers around 0.9345 and 0.9390 in that order.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.9272 at the time of writing. Pair opened at 0.9287 and is trading with a change of -0.16% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.9417, 50 SMA 0.9691, 100 SMA @ 0.968 and 200 SMA @ 0.9647.

The previous day high was 0.9317 while the previous day low was 0.9228. The daily 38.2% Fib levels comes at 0.9283, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9262, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.9238, 0.9188, 0.9148
• Pivot resistance is noted at 0.9327, 0.9367, 0.9417

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