Inflation data has dominated market sentiment overnight after a hotter-than-expected print in the US. However, more data is due tonight, and the Swiss CPI release could present a strong trading opportunity, with the currency trading near key technical levels. The Swiss National Bank has been leading the charge in terms of rate cuts in Europe, with its rate sitting at just 0.5%. The central bank will be closely monitoring today’s data print for any indications of further moves. Expectations are for the data to show a 0.1% decrease in month-on-month CPI, and any deviation from this figure could trigger sharp movements in the franc.
USDCHF is currently sitting just below key trendline resistance on the daily chart and the annual high. A weaker print should see it break higher into fresh ranges for the year, while a stronger number is likely to push it back into recent ranges. Trend traders will favour a topside move, especially following last night’s stronger US data, and a weaker number in Switzerland could create the ideal conditions for a significant move north.
Resistance 2: 0.9225 – 2024 High
Resistance 1: 0.9200 – 2025 High and Trendline Resistance
Support 1: 0.8830 – 200-Day Moving Average
Support 2: 0.8374 – 2024 Low and Trendline Support
