- The USD/CHF slides 0.28% during the New York session after US inflation peaked near 7%.
- A risk-off market mood boosts the Swiss franc, as the greenback falls underpinned by lower US bond yields.
- USD/CHF Price Forecast: Neutral bias, but a break under 0.9200 could send the pair tumbling towards 0.9165.
On Friday, after the US Labor Department reported that US CPI rose to the highest level since 1982, the USD/CHF edges down 0.32%, trading at 0.9206 during the New York session at the time of writing.
Market sentiment has worsened in the last couple of hours as investors dissected the last US inflation report. Asian and European equity indices finished in the red. Meanwhile, in Wall Street at the open, major indices rose. However, they are in the red in the last hour, except for the S&P 500 and the Nasdaq.
On Friday, the US Bureau of Labor Statistics (BLS) reported that the Consumer Price Index for November on a yearly basis reading came at 6.8%, as foreseen by analysts, though higher than October’s 6.2%. Further, the Core CPI for the same period, excluding volatile items like food and energy, came at 4.9%, as widely expected, trailed by October’s figure, which increased up to 4.6%.
USD/CHF Price Forecast: Technical outlook
The USD/CHF hourly chart depicts that the pair has a neutral bias. At press time, the spot price is approaching an upslope trendline around the 0.9200-05 area, a support level that, in the case of giving way, could send the pair towards the December 9 low at 0.9191.
To the upside, the USD/CHF is firmly pressured by the 200-hour simple moving average (SMA) at 0.9217, followed by the 50-hour SMA at 0.9236. Then the confluence of the central daily pivot and the 100-hour SMA, around 0.9228-36.
On the flip side, the 0.9200 figure is the first line of defense for USD bulls. The breach of that level exposes essential support levels, like the abovementioned December 9 low, followed by December 3 low at 0.9165.
|Today last price||0.9206|
|Today Daily Change||-0.0030|
|Today Daily Change %||-0.32|
|Today daily open||0.9236|
|Previous Daily High||0.9265|
|Previous Daily Low||0.92|
|Previous Weekly High||0.9273|
|Previous Weekly Low||0.9158|
|Previous Monthly High||0.9374|
|Previous Monthly Low||0.9088|
|Daily Fibonacci 38.2%||0.924|
|Daily Fibonacci 61.8%||0.9225|
|Daily Pivot Point S1||0.9202|
|Daily Pivot Point S2||0.9169|
|Daily Pivot Point S3||0.9137|
|Daily Pivot Point R1||0.9267|
|Daily Pivot Point R2||0.9299|
|Daily Pivot Point R3||0.9332|
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