USD/CHF recovers to 0.9900 handle, eyeing US CPI for fresh impetus

Having posted a session low at 0.9867, the USD/CHF pair managed to recover its lost ground and is now trading around 0.9900 handle ahead of US CPI release.

Today's US CPI print for the month of September will drive investor expectations over the timing of next Fed rate-hike action, which remains the sole determinant of the US Dollar price dynamics in the near-term and seems to have dimmed following Monday's disappointing US manufacturing data.

On Tuesday, improving investor risk-appetite, as depicted by buoyant sentiment surrounding European equity markets, has been a key factor that has led to the pair's recovery from session low.

Looking at the broader picture, the pair has been repeatedly facing rejection and has failed to sustain its momentum above 0.9900 handle. Also, the corrective move has been shallow, categorizing the recent price action as a consolidative phase before the next leg of directional move. Hence, it would be prudent to wait for a sustained strength above 0.9910 resistance or a break below 0.9860 support before confirming the pair's near-term momentum in either direction.

Technical levels to watch

A follow through bullish momentum above 0.9910 is likely to boost the pair immediately towards July monthly high resistance near 0.9950 above which the pair is likely to aim towards reclaiming parity mark in the near-term.

On the downside, sustained weakness back below 0.9885, leading to a subsequent break below session low support near 0.9870 and 0.9860 support, would confirm a break down and turn the pair vulnerable to immediately aim towards 0.9815-10 horizontal support.

  • 1 Week
  • 1 Month
  • 1 Quarter

1 Week Avg Forecast 0.9840 0.0%100.0%40.0%0-1001020304050607080901001100  

  • 40% Bullish
  • 60% Bearish
  • 0% Sideways

Bias Bearish 1 Month Avg Forecast 1.0013 100.0%75.0%50.0%045505560657075808590951001050  

  • 50% Bullish
  • 25% Bearish
  • 25% Sideways

Bias Bullish 1 Quarter Avg Forecast 1.0041 100.0%91.0%64.0%0657075808590951000  

  • 64% Bullish
  • 27% Bearish
  • 9% Sideways

Bias Bullish

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