USDCHF showed a nice jump after hot US PPI data. Having made a high of 0.77270 yesterday, it is currently trading at 0.76822.
With headline PPI growing 0.5% m/m (against a predicted +0.2% and prior +0.2%), US PPI for December 2025 surged warmer than expected on January 30, 2026, marking the biggest monthly increase since July 2025; year over year stayed at 3.0% (beating the predicted deceleration to 2.7%). Driven mostly by a robust 0.7% services rise in services—led by trade margins (+1.7%) and machinery wholesaling (+4.5%)—core PPI increased 0.4% m/m (more than +0.3% consensus) and displayed continuous yearly pressure of around 3.3%, while commodities remained flat and intermediate unrefined products surged (energy +5.5%). Driven by tariff-related cost pressures, the sticky inflation print reduces near-term Federal rate-cut possibilities, boosts USD and Treasury yields, weighs equities and crypto, and favors bullish USD pairs and energy commodities (like oil longs) for traders amid increased market volatility and hawkish policy risks.
Technical Analysis Points to Further Bullishness
The pair is trading below the 55-EMA,200-EMA, and 365-EMA on the 4-hour chart, indicating a bearish trend. The immediate resistance is at 0.7725; any break above targets 0.7765/0.7800/0.7865/0.7925/0.7965/0.8000.
Support Levels and Potential Declines
On the downside, near-term support is around 0.7660; any violation below will drag the pair to 0.7600/0.7540/0.7500.
Indicators (4-hour chart)
CCI (50) - Bearish
Directional Movement Index - Neutral
Trading Strategy Recommendation
It is good to sell on rallies around 0.7748-50 with SL around 0.7800 for a TP of 0.7500.
