The currency pair declined more than 150 pips on board-based US dollar selling. It hit a low of 0.88712 yesterday and is currently trading around 0.88850. The intraday bias appears to be bearish as long as the resistance 0.9000 holds.
The Swiss Consumer Price Index (CPI) for February 2025 increased by 0.6% month-to-month to 107.4 points, higher than the predicted 0.5%, a stark contrast to January's 0.1% decline to 106.8 points and an annual inflation rate of 0.4%. The increase in CPI could have a potential effect on monetary policy and currency valuation, although the exact effects on the Swiss Franc (CHF) are not defined; after the release, the exchange rate of USD/CHF remained below 0.8900.
Market eyes US ADP employment and ISM services PMI for further direction.
Technical Analysis and Resistance Levels
The pair is trading below the 34-EMA and 55-EMA on the 4-hour chart indicating a bearish trend. The immediate resistance is at 0.8940 any break above targets 0.9000/0.9035/0.9070/0.9100/0.9150/0.9200/0.92250/0.9275/0.9030.
Support Levels and Potential Declines
On the downside, near-term support is around 0.8870, any violation below will drag the pair to 0.8800/0.8720.
Bullish Indicators
CCI (50) - Bearish
Directional movement Index - Bearish
Trading Strategy Recommendation
It is good to sell on rallies around 0.8900 with a stop-loss at 0.8948 for a TP of 0.8800.
