USD/CHF Powers Higher: 0.80350 Break Eyes 0.8090–0.8150 Targets

USDCHF gained above 0.8000 after the US CPI data. It touched an intraday high of 0.80273 and is now trading at 0.80066. Any violation above 0.80350 confirms further bullish continuation.

On January 13t,h 2026, the December US Consumer Price Index report showed a month-on-month rise of 0.3% and a year-on-year rise of 2.7%, in line with economists' forecasts and unchanged from the previous month, driven by a 0.4% increase in shelter costs, which accounted for about one third of the CPI's total. The Core CPI (excluding food and energy) showed softer growth than expected, with a monthly increase of just 0.2% compared to forecasts of 0.3%, and a year-on-year increase of 2.6% compared to expectations of 2.7%. The Core CPI represents a four-year low, indicating that inflation is easing while core goods prices remain stagnant. Food prices increased 0.7% from last month; Energy prices also increased 0.3%, creating upward pressure on recreation (1.2%) and clothing/breakfast cereals, etc. Some categories of used vehicles (-1.1%) and communications (-1.9%) indicated signs of deflation. Therefore, the Federal Reserve is likely to continue to keep interest rates steady until at least early 2026 as inflation approaches the Federal Reserve's long-term inflation target of 2%.

Technical Analysis Points to Further Bullishness

The pair is trading above the 55-EMA,200-EMA, and 365 EMA on the 4-hour chart, indicating a bullish trend. The immediate resistance is at  0.80350; any break above targets  0.8070/0.8090/0.8150/0.82180.

Support Levels and Potential Declines

On the downside, near-term support is around 0.7965; any violation below will drag the pair to 0.7920/0.7860/0.7800/0.7770.

Indicators (4-hour chart)

CCI (50) - Bullish

Directional Movement Index -  Neutral

Trading Strategy Recommendation

It is good to buy on dips around 0.7978-80 with SL around 0.7920 for a TP of 0.8090/0.8148.