FX.co ★ Wiking | USD/CHF

The USD/CHF pair manages to reverse minor losses in the intraday space and rallies to the upper boundary of the daily range in the early hours of the European session on Wednesday. Nevertheless, pair prices continue consolidating within the weekly range and hover near 0.8100, virtually unchanged on the day amid caution ahead of the US inflation numbers. The US Producer Price Index (PPI) and the Consumer Price Index (CPI) will be released on Thursday and Friday, respectively. The key data is expected to shed more light on the US Federal Reserve's (Fed) policy trajectory, which in turn would drive the US Dollar (USD) and, therefore, the USD/CHF pair. Meanwhile, rising expectations of a September Fed rate hike and inflation risks from soaring energy prices, driven by growing US-Iran tensions, could underpin the US currency.

The USD/CHF pair retains a short-term positive bias as long as it holds above the 100-day SMA at 0.8004 and a cluster of Fibonacci support levels from the 61.8% retracement at 0.8028 to the 38.2% retracement at 0.8077. The RSI is at 50, indicating neutral momentum after the recent advances, while the MACD is slightly positive, showing upward pressure is easing but not yet reversing. It indicates that the pair USD/CHF is likely to continue seeking support near the 38.2% Fibonacci retracement level at 0.8077, followed by the 50.0% retracement level at 0.8053 and the 61.8% retracement level at 0.8028. Any further correction will test the 100-day SMA at 0.8004, followed by the 78.6% Fibonacci retracement level at 0.7994 and the previous low at 0.7950. To the upside, the first resistance is the 23.6% retracement level at 0.8107, above which the path to the cycle high at 0.8156 will open.