In Asian trading on Thursday, USD/CHF showed a slight decline, developing a "bearish" momentum on Wednesday. The pair is currently testing the 0.8850 level for a downside breakout.
Market participants continue to analyze the January inflation data published on Tuesday in the United States, which further strengthened the opinion on postponing the start of the Fed's rate cut cycle. The consumer price index slowed from 3.4% to 3.1% (YoY), falling short of expectations of 2.9%. On a monthly basis, the indicator recovered from 0.2% to 0.3%, while analysts did not predict any changes. Core inflation accelerated by 0.4% per month and 3.9% (YoY), exceeding forecasts of 0.3% and 3.7%, respectively. In Switzerland, the index gained 0.2% in January, while +0.6% was expected. Annual inflation decreased from 1.7% to 1.3%.
Data on industrial inflation and consumer confidence from the Swiss State Secretariat for Economic Affairs (SECO) for the first quarter will be presented today. Statistics assess household spending that affects economic activity. The production and import price index is expected to decrease by 0.2% in January after -0.6% in the previous month. This may put pressure on the national currency.
USD/CHF Technical Analysis for today
![Chart USD/CHF Technical Analysis for today](/articles_files/files/usdchf_daily.webp)
On the daily chart, the main forex indicators reflect steady growth. However, the activity of the "bulls" has not yet been observed. The MACD indicator is growing, maintaining a relatively strong buy signal. Stochastic is flat in the region of maximum values.
Above the resistance of 0.8900, we return to purchases in the direction of 0.9000. We set the stop loss at 0.8850.
When the pair is fixed below 0.8850, we move to short positions with a take profit of 0.8760. We will place the stop loss at 0.8900.