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USD/CHF Price Analysis: Bulls approach 0.8800 on mixed Swiss Inflation data, US PMI eyed

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  • USD/CHF remains on the front foot for the sixth consecutive day, clings to mild gains of late.
  • Swiss CPI slides to -0.1% MoM, 1.6% YoY in July.
  • Clear upside break of 21-DMA, bullish MACD signals keep buyers hopeful.
  • May’s bottom lures bulls but 0.8880 is a tough nut to crack for bulls.

USD/CHF sticks to mild gains around 0.8785-90 as it justifies downbeat Swiss Inflation data for July heading into Thursday’s European session. In doing so, the Swiss Franc (CHF) pair also takes clues from the firmer US Dollar, as well as a cautious mood, ahead of the US ISM Services PMI.

That said, the Swiss Consumer Price Index (CPI) matches market forecasts by rising 1.6% YoY in July versus 1.7% previous readings. The monthly readings, however, edge lower to -0.1% from 0.1% prior and -0.2% market forecasts.

Technically, the successful break of the 21-DMA and bullish MACD signals keep USD/CHF buyers hopeful of poking May’s bottom of around 0.8820.

However, a convergence of the 50-DMA and a downward-sloping resistance line from May 31, close to 0.8880 by the press time, appears a tough nut to crack for the Swiss Franc (CHF) pair buyers.

Following that, June’s bottom surrounding 0.8900 will act as the last defense of the sellers.

On the contrary, a daily closing beneath the 21-DMA level of 0.8706 needs validation from the 0.8700 round figure encompassing the late July swing high.

Should the USD/CHF bears dominate past 0.8700, a 12-day-long horizontal support zone near 0.8560 and a six-month-old descending support line, near 0.8535 as we write, will challenge the sellers.

USD/CHF: Daily chart

USD/CHF Price Analysis: Bulls approach 0.8800 on mixed Swiss Inflation data, US PMI eyed

Trend: Further upside expected

Additional important levels

Overview
Today last price 0.879
Today Daily Change 0.0015
Today Daily Change % 0.17%
Today daily open 0.8775
Trends
Daily SMA20 0.8702
Daily SMA50 0.8886
Daily SMA100 0.8955
Daily SMA200 0.9167
Levels
Previous Daily High 0.8806
Previous Daily Low 0.8718
Previous Weekly High 0.8737
Previous Weekly Low 0.8552
Previous Monthly High 0.9005
Previous Monthly Low 0.8552
Daily Fibonacci 38.2% 0.8772
Daily Fibonacci 61.8% 0.8752
Daily Pivot Point S1 0.8727
Daily Pivot Point S2 0.8678
Daily Pivot Point S3 0.8639
Daily Pivot Point R1 0.8815
Daily Pivot Point R2 0.8854
Daily Pivot Point R3 0.8903
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