#USDCHF @ 0.92650 The formation of a Spring has pushed the asset inside the woods. (Pivot Orderbook analysis)

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• The formation of a Spring has pushed the asset inside the woods.
• A stretched consolidation after a bearish bias indicates inventory accumulation for a bullish reversal.
• Overlapping 20-EMA with the asset price is indicating a consolidation ahead.

The pair currently trades last at 0.92650.

The previous day high was 0.9317 while the previous day low was 0.9256. The daily 38.2% Fib levels comes at 0.9279, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9294, expected to provide resistance.

The USD/CHF pair is displaying topsy-turvy moves in the early Tokyo session as the upside in the asset is capped around 0.9300 while the downside is restricted at 0.9250. The Swiss franc asset has turned sideways, defending the risk-appetite theme in the market.

S&P500 witnessed a decent buying interest last week as the result season kicked off. Surprisingly, the 10-year US Treasury yields gained to 3.50%, which has restricted the downside in the US Dollar index (DXY). The USD Index remained in consolidation around 101.76.

USD/CHF has reversed inside the woods after sensing a responsive buying action from the market participants below 0.9200. This has served as a Spring formation, which signifies the case of restricted downside. On a four-hour scale, stretched consolidation in USD/CHF is indicating an inventory accumulation formation, which might result in a bullish reversal ahead.

The 20-period Exponential Moving Average (EMA) at 0.9277 is overlapping with the asset price, which indicates a consolidation ahead.

Also, the Relative Strength Index (RSI) (14) is oscillating in the bullish range of 40.00-60.00, which indicates that the asset awaits a key trigger for a decisive move.

Going forward, a break above January 11 high at 0.9332 will drive the asset towards December 12 high at 0.9363 followed by the round-level resistance at 0.9400.

Alternatively, a slippage below Monday’s low at 0.9167 will result in a fresh downside journey toward March low at 0.9150. A downside move below March low will expose the asset to January 17 low at 0.9117.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.927 at the time of writing. Pair opened at 0.926 and is trading with a change of 0.11 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.9286, 50 SMA 0.9398, 100 SMA @ 0.9624 and 200 SMA @ 0.9643.

The previous day high was 0.9317 while the previous day low was 0.9256. The daily 38.2% Fib levels comes at 0.9279, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9294, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.9238, 0.9217, 0.9178
• Pivot resistance is noted at 0.9299, 0.9338, 0.936

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