• As investors expect an aggressive US Fed, USD/CHF rallies 0.80% post US hot inflation.
  • Elevated US Treasury yields lifted the greenback and weighed on stocks.
  • USD/CHF Price Forecast: The pair is upward biased and would aim towards parity if buyers achieve a daily close above 0.9885.

The USD/CHF rallies sharply following a US inflation report that showed CPI is approaching the 9% threshold, increasing the bets of a US Federal Reserve 50 bps hike added to the June and July’s penciled by the US central bank. At 0.9882, the USD/CHF approaches 0.9900 and opens the door for a parity challenge for the second time in the year.

US CPI increased, lifting US Treasury yields on US Fed hike expectations, and stocks fall

Reflection on US data is better illustrated by the equity markets. European bourses plunged and finished with losses, while US equities nosedive, slashing between 2.12% and 3% of their value. The US dollar rose while US Treasury yields skyrocketed, while the Treasury curve inverts.

The US Dollar Index, a measure of the buck’s value, is advancing 0.84%, sitting at 104.177, while the US 10-year benchmark note rises 21 basis points and is up at 3.154%.

On Friday, the USD/CHF opened around 0.9800 and dipped below the figure on the news from Japan, particularly BoJ’s and finance officials, unveiling a document threatening to intervene in the FX markets. The USD/CHF dipped towards daily’s low at 0.9766 but rallied on US data towards highs of 0.9890s

USD/CHF Price Forecast: Technical outlook

The USD/CHF remains upward biased, though at the time of writing, retraced from daily highs near 0.9898. However, buyers are in control and would keep it if they achieve a daily close above the May 19 daily high at 0.9885. If that scenario plays out, the USD/CHF first resistance would be 0.9900. Break above would expose the May 18 high at 0.9984, followed by a challenge of the YTD high at 1.0007.


Today last price 0.9882
Today Daily Change 0.0079
Today Daily Change % 0.81
Today daily open 0.9802
Daily SMA20 0.972
Daily SMA50 0.9638
Daily SMA100 0.9447
Daily SMA200 0.9332
Previous Daily High 0.9818
Previous Daily Low 0.9724
Previous Weekly High 0.9659
Previous Weekly Low 0.9554
Previous Monthly High 1.0064
Previous Monthly Low 0.9545
Daily Fibonacci 38.2% 0.9782
Daily Fibonacci 61.8% 0.976
Daily Pivot Point S1 0.9745
Daily Pivot Point S2 0.9688
Daily Pivot Point S3 0.9651
Daily Pivot Point R1 0.9839
Daily Pivot Point R2 0.9875
Daily Pivot Point R3 0.9932



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

EUR/USD corrects below 1.0300 as DXY strengthens ahead of US Michigan CSI

EUR/USD corrects below 1.0300 as DXY strengthens ahead of US Michigan CSI

EUR/USD has tumbled to near 1.2850 amid a significant recovery in the DXY. A lower US CPI print has trimmed the odds of hawkish guidance while rate hike odds are solid. This week, the US Michigan CSI data will be of utmost importance.


GBP/USD: Bears could be about to make their moves

GBP/USD: Bears could be about to make their moves

GBP/USD bulls are tiring following the overnight rally that was sparked by a miss in US Consumer Price Index. There are complications for the bulls at this point as they run into weekly resistance and there is a reversion pattern left behind on the daily chart that followed Wednesday's rally.


Gold slips below $1,790 as DXY extends recovery, Michigan CSI eyed

Gold slips below $1,790 as DXY extends recovery, Michigan CSI eyed

Gold price has dropped to near $1,785.00 after surrendering the critical support of $1,788.00 in the Asian session. The precious metal has entered into a healthy correction phase after printing a fresh monthly high at $1,807.96 on Wednesday.

Gold News

Shiba Inu price edges close to a 60% breakout as bears watch in disbelief

Shiba Inu price edges close to a 60% breakout as bears watch in disbelief

Shiba Inu price has managed to stay above the POC at $0.0000118, indicating support from bulls. A continuation of this momentum could trigger a 60% rally to $0.0000200. A daily candlestick close below the $0.0000106 support level will invalidate the bullish thesis for SHIB.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!