During the Asian session on Thursday, USD/CHF consolidated in a narrow range of 0.9629-0.9640.
On Tuesday after the US inflation report the pair moved to the active strengthening. According to the statistics, consumer price index fell from 8.5% to 8.3% in August against the forecast of 8.1%, while core inflation strengthened from 5.9% to 6.3%. That means the Fed will have to tighten monetary policy more, raising the odds of a 100 basis point rate hike on September 21 to 34%.
Today in the U.S., the retail sales report, industrial production and jobless claims data are out.
In Switzerland, the government will provide a ₣4.0 billion line of credit to Axpo Holding AG, a major energy company, to boost backup capacity amid the looming energy crisis. Measures to support other energy companies will be discussed in the fall session of parliament.
USD/CHF Technical Analysis
The current situation does not allow the main forex indicators to give clear signals. Bollinger indicator remains in flat. Histogram of MACD indicator is slightly below the zero line, but it may quickly switch to the positive range. Stochastic oscillator turned up.
After breakdown of the level of 0.9650, buy entry is considered with the nearest target at 0.9762. Stop loss is set at 0.9600.
If the pair fixes below the key support level of 0.9600, we open a buy position with Take Profit at 0.9500. Placement of a protective order at 0.9650.