USDCHF Technical Analysis – The US inflation data keeps markets guessing
Fundamental
Overview
The USD has been marginally
stronger in the past couple of days as despite a softer US CPI and US PPI reports, the components that feed into the
Core PCE increased the Fed’s preferred price index. In fact, the Core PCE Y/Y
is now projected at 2.7% vs. 2.6% prior, while the M/M measure is seen at 0.3%
vs. 0.3% prior.
On the CHF side, the Swiss CPI released recently beat expectations
with the Core measure remaining firm around 1.00% Y/Y. The market now expects
just one last rate cut at the upcoming meeting.
USDCHF
Technical Analysis – Daily Timeframe
USDCHF Daily
On the daily chart, we can
see that USDCHF is currently pulling back from the lows reached at the peak of
the risk-off sentiment that pushed the pair hundreds of pips lower in the past
couple of weeks. From a risk management perspective, the sellers will have a
better risk to reward around the 0.89 handle to position for further downside.
The buyers, on the other hand, will look for upside breakout on the lower
timeframes to keep pushing into new highs.
USDCHF Technical
Analysis – 4 hour Timeframe
USDCHF 4 hour
On the 4 hour chart, we can
see that we have an upward trendline defining the current pullback. The buyers
will likely continue to lean on the trendline to keep pushing into the
major trendline. The sellers, on the other hand, will want to see the price
breaking lower to pile in for a drop into the 0.8727 level next.
USDCHF Technical
Analysis – 1 hour Timeframe
USDCHF 1 hour
On the 1 hour chart, there’s
not much else we can add here as the buyers will look for a bounce around the minor
trendline, while the sellers will look for a break lower to push into new lows.
The red lines define the average daily range for today.
Upcoming
Catalysts
Today we conclude the week with the
University of Michigan Consumer Sentiment report.
