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USD/CHF rallies above key MAs after hot US PPI data

Forexlive Sentiment: Positive
USD/CHF gained 0.4% to 0.8085 following stronger-than-expected US Producer Price Index data showing a 0.9% increase in July. The pair broke decisively above both the 100 and 200-hour moving averages, as well as the crucial 38.2% Fibonacci retracement level at 0.8071. This level had previously capped gains during yesterday's Asian session before the pair rotated lower. The unexpected jump in producer prices has tempered expectations for aggressive Federal Reserve rate cuts, providing fresh momentum for dollar bulls. Technical indicators now point to further upside potential, with immediate resistance at 0.8100 psychological level and the 50% retracement near 0.8120. Support has shifted to the broken 0.8071 area, which should now act as a floor on any pullbacks. The clean break above multiple technical levels suggests a shift in near-term momentum favoring USD strength.

Related Symbols:

USDCHF

News data provided by Finnhub. ForexSentiment.live provides this summary as a convenience with proper attribution to the original source. The full article is available at the original publisher's website.

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