The USD/CHF saw a slight increase ahead of the US inflation data release. Federal Reserve Chair Jerome Powell’s comments to Congress influenced market sentiment. Powell emphasized the Fed’s cautious approach and reluctance to embrace rate cuts fully. The pair rose to 0.8980 as Powell highlighted the importance of solid economic data in addressing inflation. The focus now shifts to Thursday’s release of June’s inflation figures. The June Consumer Price Index (CPI) is expected to decline to 3.1%, marking the third consecutive monthly slowdown.
In terms of technical analysis, the USD/CHF’s short-term outlook has turned somewhat negative, with indicators like MACD and RSI in neutral territory. The key level to watch is the 20-day Simple Moving Average at 0.8950. Resistance was seen at the 100-day SMA at 0.8990, potentially limiting further gains. The pair may continue trading within the range defined by the 100-day and 20-day SMAs. The daily chart shows the recent movements in the USD/CHF pair.