USDCHF rebounds from key support ahead of Swiss inflation
USDCHF snapped a two-week downtrend while bouncing off 100-DMA and a horizontal area from April 20. The corrective pullback, however, failed to provide a daily closing beyond multiple hurdles surrounding 0.9620. That said, the MACD and the RSI (14) also hint at the pair’s weakness ahead of June’s Consumer Price Index (CPI) for Switzerland. It’s worth noting that sellers could witness a pullback on firmer readings but the aforementioned horizontal support and the 100-DMA, respectively near 0.9540 and 0.9520, will be crucial for bearish confirmation. Should the quote drop below 0.9520, the odds of witnessing a slump towards March’s high, also the 61.8% Fibonacci retracement of January-May upside, near 0.9460, can’t be ruled out.
On the contrary, downbeat Swiss data may extend the latest recovery towards breaking the 0.9620 resistance, a break of which could direct the run-up to the 38.2% Fibonacci retracement level of 0.9700. During the USDCHF advances past 0.9700, the 0.9715-20 area may act as a validation point for the north-run targeting the lows marked during early May and June, close to 0.9860.
Overall, USDCHF remains on the bear’s radar unless crossing 0.9620 but the further downside needs validation from 0.9520.
