The USDCHF surged more than 80 pips after the release of Swiss CPI data. It hits an intraday high of 0.80941 and is currently trading around 0.080830.
Defying predictions of a 0.2% drop and remaining stable after a 0.2% increase in June, the Swiss Consumer Price Index (CPI) for July 2025 showed a flat monthly number of 0.0%. With inflation hovering at 0.2% annually, it somewhat outpaced market estimates as well as the previous month's 0.1%. Driven by price hikes in industries like restaurants/hotels, housing/energy, and communication, this small rise in inflation—balanced out by declines in food, transportation, and furnishings—could ease near-term pressure on the Swiss National Bank (SNB) to carry out rate reductions, notwithstanding a varied economic climate characterized by poor manufacturing statistics and global trade tensions.
Technical Analysis Points to Further Upside
The pair is trading above the 55-EMA, 200 EMA, and below the 365 EMA on the 4-hour chart, indicating a mixed trend. The immediate resistance is at 0.8100, any break above targets 0.8135/0.8170/0.8215/0.8250.
Support Levels and Potential Declines
On the downside, near-term support is around 0.8060; any violation below will drag the pair to 0.8040/ 0.8020/0.7980/0.7920/0.7860/0.780.
Indicators (1-hour chart)
CCI (50) - Bearish
Directional Movement Index - Neutral
Trading Strategy Recommendation
It is good to buy on dips around 0.8040 with a stop-loss at 0.800 for a TP of 0.8170/0.8215.
