#USDCHF @ 0.94220 has stabilized above 0.9400 amid the risk-off mood underpinned due to hawkish Fed Powell’s remarks. (Pivot Orderbook analysis)

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• USD/CHF has stabilized above 0.9400 amid the risk-off mood underpinned due to hawkish Fed Powell’s remarks.
• Extremely hawkish Fed Powell’s remarks have confirmed that fears of persistent inflation are genuine.
• SNB Jordan said that the appreciation of the Swiss Franc has protected them from imported inflation

The pair currently trades last at 0.94220.

The previous day high was 0.9373 while the previous day low was 0.9305. The daily 38.2% Fib levels comes at 0.9331, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9347, expected to provide support.

The USD/CHF pair has shifted its auction above the round-level resistance of 0.9400 after a whooping upside momentum post extremely hawkish remarks from Federal Reserve (Fed) chair Jerome Powell. The Swiss franc asset is expected to resume its upside journey towards the critical resistance of 0.9435 as investors have underpinned the risk aversion theme amid solid chances of more rates from the Fed that previously anticipated.

S&P500 futures are displaying nominal gains after a bearish Tuesday, portraying a dead cat bounce in the overall risk-off mood. The US Dollar Index (DXY) has refreshed its three-month high above 105.60 as the risk appetite of the market participants have squeezed dramatically. The USD Index is expected to remain in action ahead of the United States Automatic Data Processing (ADP) Employment Change (Feb) data.

Hawkish remarks from Fed chair Jerome Powell while addressing Congress have confirmed that fears of persistent inflation in the US economy are genuine and chances of rate pause are not in the picture. Fed’s Powell has confirmed that the central bank is prepared for more rates than previously estimated to bring down inflationary pressures.

Incoming data from the US economy is critically resilient, which is capable of halting the declining trend of inflation. Therefore, more rates are highly required to tame stubborn inflation.

Investors will get more clarity after the release of the US ADP Employment data. The street is anticipating a jump in employment numbers by 200K in February, higher than January’s figure of 106K.

On the Swiss Franc front, Swiss National Bank (SNB) Chairman Thomas J. Jordan stated the inflation in Switzerland is low in international comparison but above the price stability target of the SNB. He explained that the appreciation of the Swiss Franc has protected them from imported inflation.

On Monday, Swiss headline Consumer Price Index (CPI) (Feb) landed at 3.4% YoY and the core CPI that excludes oil and food prices were recorded at 2.4% YoY.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.9422 at the time of writing. Pair opened at 0.932 and is trading with a change of 1.09 % .

The pair is trading above its 20 Daily moving average @ 0.9294, above its 50 Daily moving average @ 0.926 , below its 100 Daily moving average @ 0.9428 and below its 200 Daily moving average @ 0.9566

The previous day high was 0.9373 while the previous day low was 0.9305. The daily 38.2% Fib levels comes at 0.9331, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9347, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.9292, 0.9265, 0.9224
• Pivot resistance is noted at 0.936, 0.9401, 0.9428

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