Trade the USD/CHF Rally? Technicals Favor Further Downside

USDCHF trades flat after a more than 100 pips sell-off in the past three days. It hit a low of 0.81570 yesterday and is currently trading around 0.81874. Intraday bias appears to be bearish as long as the resistance 0.8250 holds. 

With a rise of 0.2% year-on-year, Switzerland's Consumer Price Index (CPI) for May 2025 indicated a little gain. This suggests a small increase from the 0.0% reported in April and follows a time of usually flat or negative readings, therefore pointing to a modest comeback of inflationary pressure. Although the figures indicate inflation is still low, the rise may ease anxieties about sustained deflationary risks in the Swiss economy.

Technical Analysis Points to Further Upside

The pair is trading below the   55-EMA, below  200 EMA and 365 EMA on the 1-hour chart indicating a mixed trend. The immediate resistance is at  0.8250 any break above targets 0.8300/0.8345/0.8375/0.8435/0.8480.

Support Levels and Potential Declines

On the downside, near-term support is around 0.8150, any violation below will drag the pair to 0.8135/0.8090/0.8000.

Indicators (4-Hour)

CCI (50) - Bearish
Directional movement Index -  Bearish

Trading Strategy Recommendation

It is good to sell on rallies around 0.8200 with a stop-loss at 0.82500 for a TP of 0.8090.