FX.co ★ USD/CHF: upside seems over

The USD/CHF pair is trading at 0.8916 at the time of writing. Technically, the price action signaled exhausted buyers but a new leg down is far from being confirmed. The bias is still bullish as the Dollar Index could resume its growth after a minor retreat.

Fundamentally, the NFIB Small Business Index came in at 91.3 points versus 91.6 points estimated and compared to 91.9 points in the previous reporting period. Earlier, the US 10-y Bond Auction came in at 4.29|2.5.

Tomorrow, the UK GDP could have an impact on the USD/CHF as well. Still, only the US inflation figures could really shake the price. Core CPI is expected to increase by 0.2%, CPI m/m may report a 0.6% growth, while CPI y/y could register a 3.6% growth. Higher inflation could boost the USD, while lower inflation should weaken the greenback.

USD/CHF 0.8894 Key Support!

USD/CHF found resistance at 0.8944 and now it has moved sideways in the short term. As you can see, the rate dropped below the uptrend line signaling that the upwards movement ended.

Technically, the former low of 0.8894 represents a key downside obstacle. Now, it's trapped between 0.8894 and 0.8944 levels.

USD/CHF Outlook!

Testing and retesting 0.8894 and the weekly pivot point of 0.89, registering only false breakdowns may announce a new bullish momentum.

Dropping and closing below 0.8894 activates more declines and is seen as a new selling signal. The next downside target could be represented by the weekly S1 (0.8860).