#USDCHF @ 0.90530 is expected to extend its downside journey towards 0.9050 amid dovish Fed Harker commentary. (Pivot Orderbook analysis)
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- USD/CHF is expected to extend its downside journey towards 0.9050 amid dovish Fed Harker commentary.
- Fed Harker is confident that there will be no recession in the US economy.
- SNB Jordan is committed to bringing inflation back below 2% as soon as possible as he sees inflation risks higher than deflation.
The pair currently trades last at 0.90530.
The previous day high was 0.9148 while the previous day low was 0.9056. The daily 38.2% Fib levels comes at 0.9113, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9091, expected to provide resistance.
The USD/CHF pair is in a declining stage in early Asia and is expected to drop further toward the crucial support of 0.9050. The Swiss Franc asset witnessed a steep fall after dovish commentary from Federal Reserve (Fed) policymakers.
S&P500 futures have added some gains in Asia after a bullish Thursday, portraying a risk-appetite theme. Fed policymakers’ dovish commentary infused fresh blood into risk-perceived assets and weighed heavily on the US Dollar Index (DXY).
The US Dollar Index (DXY) is gauging an intermediate support around 103.50 after an intense sell-off move. Philadelphia Federal Reserve Bank President Patrick Harker stated on Thursday that he believes it is time for the central bank to ‘hit the stop button’ for at least one meeting, reiterating his comments from Wednesday about a potential pause at the next meeting. Harker argued that such a move would be prudent at this time.
Regarding economic outlook, Fed Harker is confident that there will be no recession in the United States economy, however, a significant deterioration in the labor market cannot be ruled out.
Going forward, the release of the US Nonfarm Payrolls report will provide more clarity about the Employment status. Analysts at Danske Bank stated “We expect to see another relatively upbeat US Jobs Report. So far the signals from leading data have pointed towards healthy employment growth, which could be further supported by a renewed uptick in labor force participation. We think NFP grew by a solid 200K.”
On the Swiss Franc front, annual Real Retail Sales (April) contracted significantly by 3.7% while the street was anticipating a contraction of 1.4%, and previous data was contracted by 1.9%. On Wednesday, Swiss National Bank (SNB) Chairman Thomas Jordan cited that they have to bring inflation back below 2% as soon as possible and noted that he sees inflation risks higher than deflation in the future, due to deglobalization.
Technical Levels: Supports and Resistances
USDCHF currently trading at 0.9056 at the time of writing. Pair opened at 0.9106 and is trading with a change of -0.55 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 0.9056 |
| 1 | Today Daily Change | -0.0050 |
| 2 | Today Daily Change % | -0.5500 |
| 3 | Today daily open | 0.9106 |
The pair is trading above its 20 Daily moving average @ 0.8985, above its 50 Daily moving average @ 0.9005 , below its 100 Daily moving average @ 0.9131 and below its 200 Daily moving average @ 0.9381
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 0.8985 |
| 1 | Daily SMA50 | 0.9005 |
| 2 | Daily SMA100 | 0.9131 |
| 3 | Daily SMA200 | 0.9381 |
The previous day high was 0.9148 while the previous day low was 0.9056. The daily 38.2% Fib levels comes at 0.9113, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9091, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 0.9059, 0.9011, 0.8967
- Pivot resistance is noted at 0.9151, 0.9195, 0.9243
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 0.9148 |
| Previous Daily Low | 0.9056 |
| Previous Weekly High | 0.9075 |
| Previous Weekly Low | 0.8941 |
| Previous Monthly High | 0.9148 |
| Previous Monthly Low | 0.8820 |
| Daily Fibonacci 38.2% | 0.9113 |
| Daily Fibonacci 61.8% | 0.9091 |
| Daily Pivot Point S1 | 0.9059 |
| Daily Pivot Point S2 | 0.9011 |
| Daily Pivot Point S3 | 0.8967 |
| Daily Pivot Point R1 | 0.9151 |
| Daily Pivot Point R2 | 0.9195 |
| Daily Pivot Point R3 | 0.9243 |
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