USDCHF – bulls hold grip on signals of another SNB rate cut

The USDCHF regained traction on Thursday after a shallow pullback from new five-month high (0.9095) and holding within a narrow consolidation.

Softer than expected Swiss inflation data adds to expectations that the SNB will opt for another 25 basis points rate cut in June, that further deflates Swiss franc.

The pair continues to trade near the top of larger bull-channel from 0.8332 (2024 low) and is on track for the second weekly close above psychological 0.90 level that reinforces bullish stance.

Technical studies remain firmly bullish on daily chart (strong positive momentum / MA’s in bullish setup) and underpin the action, as rising 10 DMA (0.9026) which marks the first support, contained Wednesday’s dip.

Consolidation should stay above 0.90 to keep immediate bullish bias for retest of new high and attack at bull-channel resistance line (0.9127), with firm break here to further reinforce bullish structure and unmask targets at 0.9180 (converged 100/200WMA’s) and 0.9244 (Oct 2023 top).

Res: 0.9095; 0.9127; 0.9180; 0.9244
Sup: 0.9026; 0.9000; 0.8966; 0.8930