Usdchf consolidates as markets await crucial US inflation data release

USDCHF Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	-0.23%	-20.3 Pips
Week to-date	-0.24%	-21.3 Pips
March	-2.81%	-253.3 Pips

Upcoming key events (London Time)

Wed 12:30 PM USD CPI Inflation Rate (12-mth)

What happened lately

There are currently no major economic news releases that significantly impact global currency markets, including the USDCHF pair. Investors are likely in a waiting mode, looking for new data or developments that could influence decisions. However, it is essential to refer to upcoming economic indicators that might sway market behaviors. On Wednesday, a critical piece of economic data for the United States, the Consumer Price Index (CPI) Inflation Rate for the 12-month period, is scheduled to be released. This figure is expected to be highly influential, as it provides insights into inflationary pressures within the U.S. economy, guiding future Federal Reserve monetary policies.

The USDCHF pair experienced a minor dip on Monday, declining by 0.23% to reach 0.87720. The movement indicates that the pair is in a consolidation phase. Traders and investors might be cautious, waiting for the CPI data release, which can significantly impact the pair’s dynamics. As the CPI figure plays a fundamental role in shaping U.S. monetary policy, its implications on interest rates can directly affect the value of the USD against other currencies like CHF.

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What can we expect from USDCHF today?

USDCHF on Monday dropped -0.23% to 0.87720. Price is below 9-Day EMA while Stochastic is falling in oversold zone.

Updated daily direction for USDCHF looks mixed as the pair is likely to consolidate above 0.87598 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.87981 or trades above daily pivot 0.87789. Break above could target R1 at 0.87912. While to the downside, we are looking at 0.87598 (S1) and daily low of 0.87667 as support levels. USDCHF need to break on either side to indicate a short-term bias. A close below 0.87667 would indicate selling pressure.

For the week to-date, take note that USDCHF is mixed as compared to the prior week.

Key levels to watch out:

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