USD/CHF shifts negative and drops toward 0.9260 on delicate USD

USD/CHF shifts negative and drops toward 0.9260 on delicate USD

• USD/CHF shifts negative and drops toward 0.9260 on delicate USDretraced earlier gains after reaching a daily high of 0.9316.
• Positive US economic data is bad for the greenback as it weakens.
• USD/CHF Price Analysis: A break / daily close below 0.9300 would expose the pair to additional selling pressure.

USD/CHF shifts negative and drops toward 0.9260 on delicate USD is trading below its opening price, despite failing to break through the 20-day Exponential Moving Average (EMA) and failing to hold to 0.9300, despite positive US data crossing newswires.USD/CHF shifts negative and drops toward 0.9260 on delicate USD.

As a result, at the time of writing, the USD/CHF is trading at 0.9265.

Wall Street has resumed its upward trend following a brief hiccup that saw the S&P 500 and Nasdaq turn red. The release of softer inflation data in the United States (US) on Thursday fueled hopes for a less aggressive US Federal Reserve (Fed), causing the US Dollar (USD) to fall. According to a University of Michigan (UoM) survey, consumer sentiment improved, exceeding estimates of 60.5 to reach 64.6. In the same poll, one-year inflation expectations were revised to 4% from 4.4% in December, 

while five-year inflation is expected to hit 3% from 2.9% in December.

the US Dollar Index (DXY), which measures the buck’s performance against a basket of six rival currencies, reverses earlier gains, falling 0.04% to 102.201.

During the session, the USD/CHF broke through the 20-day EMA at 0.9293 and broke through the 0.9300 level. Nonetheless, as the greenback fell, the major gave up its gains and is now trading at fresh two-day lows around 0.9255.

Technical Analysis of the USD/CHF Exchange Rate

Technically, the USD/CHF would most likely continue its downtrend, though it’s fair to say that if the US CPI report hadn’t missed estimates, the USD/CHF would have had momentum and could have tested the 50-day EMA at 0.9405. Aside from that, oscillators such as the Relative Strength Index (RSI) and the Rate of Change (RoC) indicate that sellers continue to be in control. As a result, 

the key support levels for the USD/CHF would be 0.9200, followed by the current week’s low of 0.9167, and ahead of the 2022 low of 0.9091.