USD/CHF Pares Gains on Mixed Data: Bearish Bias Prevails Below 0.8405

USDCHF pared some of its gains after mixed US economic data.  It hits an intraday low  of 0.83578 and is currently trading around 0.83585. Intraday bias appears to be bearish  as long as the resistance 0.8405 holds. 

US retail sales rose 0.1% from month to month in April 2025, better than the predicted 0.0% unchanged. That small increase followed a strong 1.4% increase in March, driven by consumers purchasing tariff-sensitive items ahead of expected price hikes. The April rise shows moderation in consumer spending growth but also shows resilience to tariffs and a cautiously consumer-friendly environment. The new claims level was 229,000, the same as last week and in line with expectations. This steady level still indicates a strong labor market.  

Headline PPI (Producer Price Index):

The April 2025 PPI inflation annual rate was 2.4%, from 2.7% in March.

Core PPI (PPI excluding food, energy, and trade services):

The underlying PPI inflation in April 2025 was at 2.9% year-on-year.

These numbers show headline as well as underlying producer inflation moderated in April, which shows reduced producer-level price pressures.

Technical Analysis Points to Further Upside

The pair is trading below the 34-EMA and  55-EMA below 200 EMA  on the 4-hour chart indicates a mixed trend. The immediate resistance is at  0.8378 any break above  targets 0.8450/0.850/0.8520/0.8580/0.8625.

Support Levels and Potential Declines

On the downside, near-term support is around 0.8320, 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) - Bearish
Directional movement Index -  Neutral

Trading Strategy Recommendation

It is good to sell on rallies around 0.8378-80 with a stop-loss at 0.8435 for a TP of 0.8190.