CHF – USD/CHF hovers at low levels, accumulating upward momentum

The Swiss Federal Statistical Office announced on Monday that due to falling prices of petroleum products and pharmaceuticals, Switzerland's producer and import price index (PPI) fell 0.2% month-on-month in January, the same decline as in December, marking the ninth consecutive month of decline. The PPI fell 2.2% in January, a larger drop than the 1.8% decline in December.

Regarding the USD/CHF exchange rate, the technical charts show a rebound in the RSI and Stochastic Oscillator. Furthermore, the exchange rate touched 0.7604 on January 27th and held above the important 0.76 level until two weeks ago, subsequently gradually rising. Therefore, the USD/CHF pair is expected to have further upward momentum in the short term. However, attention should be paid to the high of 0.7818 on February 2nd, which can be considered the neckline of a double bottom pattern. A break above this level could strengthen the rebound, potentially extending to 0.7850, the level held in December of last year, followed by 0.80 and the November 5th high of 0.8124. The supporting levels are at 0.7710 and 0.7650, with the key level remaining at 0.76, and further support at the 0.75 level.

Forecast range:
Resistance 0.7818* - 0.7850 – 0.8000 – 0.8124*
Support 0.7710 – 0.7650 - 0.7600** - 0.7500

This Week's News Highlights:

23/2
Switzerland January Producer/Import Price Index MoM -0.2%, YoY -2.2%

Focus:

Friday
Switzerland Q4 GDP (15:00)
Switzerland KOF February Leading Indicator (16:00)

Any questions? contact our professional analysis team