USDCHF pared some of its gains after US CPI data. It hits an intraday high of 0.84312 and is currently trading around 0.84165. Intraday bias appears to be bullish as long as the support 0.8378 holds.
Today's release of the US Consumer Price Index (CPI) for April 2025 showed a 0.2% month-to-month increase, reversing last month's fall of 0.1%, and a 2.3% year-on-year increase, just below March's year-on-year increase of 2.4%. The CPI reading reached an all-time high of 320.80. Core inflation remained at 2.8%. Overall, the report indicates moderate inflation, a shade over the 2% target of the Federal Reserve, and markets and policymakers are observing the impact of tariffs and overall economic trends as the Federal Reserve avoids reducing interest rates.
Technical Analysis Points to Further Upside
The pair is trading above the 34-EMA and 55-EMA on the 4-hour chart indicates a major up trend. The immediate resistance is at 0.8500 any break above targets 0.8520/0.8580/0.8625.
Support Levels and Potential Declines
On the downside, near-term support is around 0.83780, any violation below will drag the pair to 0.8340/0.8320/0.8270/0.8230/0.8180/0.8135/0.8090/0.8000.
Bullish Indicators
CCI (50) - Bullish
Directional movement Index - Bullish
Trading Strategy Recommendation
It is good to buy on dips around 0.83780 with a stop-loss at 0.8320 for a TP of 0.8500.
