The USDCHF at 0.90444 is looking to surpass 0.9040 as optimism is boosted by the USD Index’s V-shape recovery.

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• USD/CHF is eyeing a break above 0.9040 amid optimism inspired by a V-shape recovery in the USD Index.

The pair currently trades last at 0.90444.

The previous day high was 0.906 while the previous day low was 0.8966. The daily 38.2% Fib levels comes at 0.9002, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9024, expected to provide support.

The USD/CHF pair is facing delicate barricades around the immediate resistance of 0.9040 in the Asian session. The Swiss Franc asset is aiming to extend its upside journey supported by a solid recovery in the US Dollar Index (DXY).

S&P500 futures are showing nominal losses in Tokyo as investors are cautious that more interest rate hikes by the Federal Reserve (Fed) would push the United States swiftly toward recession. US equities were extremely volatile on Wednesday as optimism inspired by a skip in the policy-tightening spell by the Fed receded after Fed chair Jerome Powell confirmed that two small interest rate hikes are in the pipeline and will be announced by year-end.

The USD Index showed a V-shape recovery after printing a fresh four-week low at 102.66. Hawkish guidance by the Fed infused fresh blood into the USD Index. The asset is expected to extend gains further amid cautious market sentiment.

After having detailed guidance over interest rates, investors are shifting their focus toward monthly US Retail Sales (May) data. The economic data is seen contracting by 0.1% vs. an expansion of 0.4% registered in April. As food and gasoline prices have fallen significantly, a scrutiny of the Retail Sales report will be required to gauge whether the retail demand has contracted due to lower prices of necessities or the economy is losing resilience.

Meanwhile, the Swiss Franc bulls are failing to offset strength in the US Dollar despite the Swiss National Bank (SNB) is expected to raise interest rates further. SNB Chairman Thomas J. Jordan has already cleared that the central bank won’t wait for an increase in inflation as the negative effects of a low inflation environment are extremely lower than a highly-inflated scenario.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.9036 at the time of writing. Pair opened at 0.9012 and is trading with a change of 0.27 % .

The pair is trading below its 20 Daily moving average @ 0.9048, above its 50 Daily moving average @ 0.8987 , below its 100 Daily moving average @ 0.9115 and below its 200 Daily moving average @ 0.9347

The previous day high was 0.906 while the previous day low was 0.8966. The daily 38.2% Fib levels comes at 0.9002, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9024, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.8965, 0.8918, 0.887
• Pivot resistance is noted at 0.906, 0.9108, 0.9155

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