USD/CHF SHIFTS NEGATIVE AND DROPS TOWARD 0.9260 ON SOFT USD

USD/CHF returned to earlier gains after printing an intraday high of 0.9316. Positive US economic data is bad as the dollar weakens. USD/CHF Price Analysis: A break / daily close below 0.9300 will put the pair under further selling pressure. At , , USD/CHF is trading below its opening price, although it failed to break above the 20-day exponential moving average (EMA) and held steady at 0.9300, even as US data topped the news. Accordingly, USD/CHF is changing hands at 0.9265 at the time of writing. Wall Street continued to rally after a brief sweat as the S&P 500 and Nasdaq turned red. Thursday’s announcement of softer US (US) inflation raised hopes for a less aggressive US Federal Reserve (Fed); consequently, the US dollar (USD) weakened. The study by the University of Michigan (UoM) showed that consumer sentiment improved when it beat estimates of 60.5 and reached 6 .6. In the same survey, inflation expectations for the year were revised to percent from . percent in December, while inflation is expected to rise to 3 percent over five years from 2.9 percent last month. Meanwhile, the US dollar index (DXY), which measures the pound’s performance against a basket of six rivals, erased earlier gains, rising 0.0 % to 102.201. During the session, USD/CHF cleared the 20-day EMA at 0.9293 and cleared 0.9300. However, the key pulled back from the rally as the dollar weakened and sank to a new two-day low near 0.9255. USD/CHF PRICE ANALYSIS: TECHNICAL OUTLOOK From a technical perspective, USD/CHF is likely to continue its downtrend, although it is fair to say that if the US CPI report had not been missing estimates, USD/CHF would have been and could have been. bullish tested the 50-day EMA at 0.9 05. Additionally, oscillators such as the Relative Strength Index (RSI) and the Rate of Change (RoC) suggest that sellers should remain in charge. Therefore, key support levels for USD/CHF would be 0.9200, followed by this week’s low of 0.9167, before the 2022 low of 0.9091.

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