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%.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

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.

USDCHF Hawkish Above 0.9100

Dec 11 2021

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