USD/CHF is down 0.4% on the day at 0.9115 as Swiss inflation data here sparks some uncertainty over the SNB’s plans. At least for now, headline inflation and annual core inflation are still below the crucial 2% mark. But it is not certain that this situation will continue in the months to come.
USD/CHF Hourly Chart
This does not yet change much for the SNB. But ideally, they wouldn’t want inflation to rise again as they seek to continue cutting interest rates.
USD/CHF has now returned to minor support near 0.9100, so this will be a level to watch in the near term. Overall though, the pair faces strong resistance during the week. The 100-week and 200-week moving averages stand at 0.9154 and 0.9170, respectively. And buyers need to break above this ceiling in order to establish stronger bullish momentum.
Just above are also the October high at 0.9245 and the 50.0 Fibonacci retracement level from last year’s October-December decline to 0.9240. This will provide additional resistance to the pair in the event of a breakout of the weekly moving averages, if we get there.
USD/CHF Weekly Chart
cnbctv18-forexlive
