USD/CHF: pressuring below the 50 4hr sma, testing below 0.96 the figure

Currently, USD/CHF is trading at 0.9596, down -0.40% on the day, having posted a daily high at 0.9682 and low at 0.9594.

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USD/CHF is back below the 50 sma on the 4hr chart located at 0.9606 while the greenback has lost some traction given that the latest US inflation data won't help the Fed convince markets that further rate hikes are to come, as explained by analysts at ING Bank. PCE came in as expected at 1.4% but below the previous 1.5%.

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"We are still optimistic on the outlook, partly as the weaker dollar and higher oil prices add upward pressure to inflation," explained the analysts at ING Bank. "This should be enough to see another Fed rate hike in December, but the lack of an imminent inflation turnaround might see a few Fed officials lower their expectations for rate hikes when the infamous dot diagram is released at the next FOMC meeting," the analysts added.

USD/CHF levels

From a wider perspective, analysts at Commerzbank explained that USD/CHF recently briefly dropped into 2 year lows but the move was not sustained and it has seen an aggressive rebound from a support line circa 0.9423 (drawn from the November 2016 low to the July low."

The recent high is just below where the same analysts suggest a strong resistance is located: "Near term rallies will find initial resistance at the 0.9699 August 23 high. More significant resistance can be seen at the current August highs at 0.9770/72," the analysts noted.