- US prices paid by producers show signs of easing, except for the core PPI.
- Core inflation in the US is showing signs of being stickier than estimated.
- USD/CHF Price Analysis: Break above 0.9630 puts the 0.9700 figure in play; otherwise, a fall toward 0.9420 is on the cards.
The USD/CHF is trading sideways after rising 0.82% on Tuesday as a reaction to US inflation data showing signs that it’s easing in plain vanilla CPI. Still, core inflation is edging higher on the consumer and producer side, as the US Department of Labor reported. Therefore, the USD/CHF remained almost unchanged but slightly down 0.01%, trading at 0.9613.
USD/CHF Price Analysis: Technical outlook
On Wednesday, the USD/CHF daily chart depicts the pair as neutral-to-downward biased, and it’s worth noting that earlier, the major tested the weekly high at around 0.9633, but broad US dollar weakness put a lid on higher USD/CHF prices.
Meanwhile, the USD/CHF four-hour scale illustrates the pair consolidating above the 20-EMA and the daily pivot point, each at 0.9576 and 0.9574, respectively. Additionally, the 200-EMA at 0.9612 is acting as resistance, keeping the USD/CHF prices subdued and unable to break the daily high at 0.9630.
A clear break above the 200-EMA would open the door for a test of Wednesday’s high at 0.9630, which, once cleared, the major could rally to the R1 pivot point at 0.9668. The break above would expose the confluence of the 50 and 100-EMAs at 0.9700.
On the flip side, the USD/CHF first support would be the confluence of the 20-EMA and the central pivot at 0.9574-76. A breach of the latter will expose the S1 pivot at 0.9515, followed by the September 13 low at 0.9479, followed by the S2 pivot point at 0.9421.
USD/CHF Key Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD holds steady near 0.6250 ahead of RBA Minutes
The AUD/USD pair trades on a flat note around 0.6250 during the early Asian session on Monday. Traders brace for the Reserve Bank of Australia Minutes released on Monday for some insight into the interest rate outlook.
USD/JPY consolidates around 156.50 area; bullish bias remains
USD/JPY holds steady around the mid-156.00s at the start of a new week and for now, seems to have stalled a modest pullback from the 158.00 neighborhood, or over a five-month top touched on Friday. Doubts over when the BoJ could hike rates again and a positive risk tone undermine the safe-haven JPY.
Gold price bulls seem non-committed around $2,620 amid mixed cues
Gold price struggles to capitalize on last week's goodish bounce from a one-month low and oscillates in a range during the Asian session on Monday. Geopolitical risks and trade war fears support the safe-haven XAU/USD. Meanwhile, the Fed's hawkish shift acts as a tailwind for the elevated US bond yields and a bullish USD, capping the non-yielding yellow metal.
Week ahead: No festive cheer for the markets after hawkish Fed
US and Japanese data in focus as markets wind down for Christmas. Gold and stocks bruised by Fed, but can the US dollar extend its gains? Risk of volatility amid thin trading and Treasury auctions.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.