#USDCHF @ 0.89240 is expected to extend the downside to near 0.8900 amid weak appeal for the USD Index as safe-haven. (Pivot Orderbook analysis)
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]
- USD/CHF is expected to extend the downside to near 0.8900 amid weak appeal for the USD Index as safe-haven.
- A consecutive 25 bps interest rate hike is expected to be followed by neutral guidance from the Fed.
- US yields are under immense pressure after Treasury estimated that it would be out of funds for payments by early June.
The pair currently trades last at 0.89240.
The previous day high was 0.8967 while the previous day low was 0.8915. The daily 38.2% Fib levels comes at 0.8947, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8935, expected to provide resistance.
The USD/CHF pair is struggling to defend the immediate support of 0.8920 in the early Asian session. The Swiss franc asset has faced immense selling pressure after a perpendicular dive in the US Dollar Index (DXY). The major is expected to decline further towards the round-level support of 0.8900 as debt-ceiling concerns have faded the appeal of the USD Index as safe-haven.
S&P500 futures are subdued in Asia after a bearish Tuesday. Investors dumped United States equities amid uncertainty over the interest rate policy of the Federal Reserve (Fed). Also, the market mood is quite risk averse as a raise in the debt ceiling will impact the long-term outlook of the US economy.
The US Treasury yields are under immense pressure after US Treasury Secretary Janet Yellen estimated that Treasury would be out of funds for payments by early June. Concerns over the debt ceiling stemmed after US President Joe Biden showed reluctance in meeting with US Senate McCarthy as House Republicans demanded big cuts in the President’s spending initiatives against the raising of the debt ceiling. At the time of writing, the 10-year US Treasury yields have dropped to near 3.43%.
As per the CME Fedwatch tool, Fed chair Jerome Powell is expected to raise interest rates by 25 basis points (bps) to 5.00-5.25%. A consecutive 25 bps interest rate hike is expected to be followed by neutral guidance as US Manufacturing PMI is consistently showing contraction, the growth rate has slowed down, and labor market conditions are losing resilience.
On the Swiss franc front, Friday’s inflation data (April) will be keenly watched. The monthly Consumer Price Index (CPI) is expected to accelerate by 0.5% at a higher pace than the prior recording of 0.2%. While annual CPI is expected to soften to 2.8% vs. the prior release of 2.9%.
Technical Levels: Supports and Resistances
USDCHF currently trading at 0.8924 at the time of writing. Pair opened at 0.8955 and is trading with a change of -0.35 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 0.8924 |
| 1 | Today Daily Change | -0.0031 |
| 2 | Today Daily Change % | -0.3500 |
| 3 | Today daily open | 0.8955 |
The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.8973, 50 SMA 0.9152, 100 SMA @ 0.92 and 200 SMA @ 0.9445.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 0.8973 |
| 1 | Daily SMA50 | 0.9152 |
| 2 | Daily SMA100 | 0.9200 |
| 3 | Daily SMA200 | 0.9445 |
The previous day high was 0.8967 while the previous day low was 0.8915. The daily 38.2% Fib levels comes at 0.8947, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8935, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 0.8925, 0.8894, 0.8873
- Pivot resistance is noted at 0.8976, 0.8998, 0.9028
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 0.8967 |
| Previous Daily Low | 0.8915 |
| Previous Weekly High | 0.8976 |
| Previous Weekly Low | 0.8852 |
| Previous Monthly High | 0.9198 |
| Previous Monthly Low | 0.8852 |
| Daily Fibonacci 38.2% | 0.8947 |
| Daily Fibonacci 61.8% | 0.8935 |
| Daily Pivot Point S1 | 0.8925 |
| Daily Pivot Point S2 | 0.8894 |
| Daily Pivot Point S3 | 0.8873 |
| Daily Pivot Point R1 | 0.8976 |
| Daily Pivot Point R2 | 0.8998 |
| Daily Pivot Point R3 | 0.9028 |
[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group
