After a daily high of 0.9316, USD/CHF reversed previous gains. Positive US economic indicators hurt the dollar because the US Dollar is losing value.

Price analysis for the USD/CHF: The pair would be exposed to more selling pressure on a break or daily closure below 0.9300.

Although positive US statistics passed newswires, the USD/CHF is now trading below its initial price and has failed to break above the 20-day EMA and hold to 0.9300. Therefore, at the time of writing, the USD/CHF is trading at 0.9265.

Wall Street has resumed its upward momentum after a minor glitch that saw the S&P 500 and Nasdaq turn red. The US Dollar (USD) declined due to Thursday’s announcement of lower US inflation, which raised prospects for a less interventionist US Federal Reserve (Fed). According to a University of Michigan (UoM) study, consumer sentiment has increased, surpassing expectations of 60.5 and reaching 64.6.

According to the same survey, estimates for inflation over the next year were reduced from 4.4% in December to 4%, while estimates for inflation over the next five years increased from 2.9% to 3%.

Meanwhile, the US Dollar Index (DXY), which compares the dollar’s value to a basket of six competitors, loses some of its early gains and is now down 0.04% at 102.201.

The USD/CHF cleared the 20-day EMA at 0.9293 and the 0.9300 level throughout the session. However, when the dollar dropped, the major gave up those gains and is now falling to new two-day lows under 0.9255.

Technical analysis of the USD/CHF exchange rate

Technically, the USD/CHF would likely continue its downward trend, but it’s fair to say that it had momentum and hit the 50-day EMA around 0.9405 if the US CPI data had met expectations. In addition, oscillators like the Rate of Change (RoC) and the Relative Strength Index (RSI) indicate that sellers are still in control. Therefore, the current week’s low of 0.9167, followed by the 2022 low of 0.9091, would be the critical support levels for the USD/CHF.