USD/CHF Price Analysis: Subdued around 0.9610 due to broad US dollar weakness

• US prices paid by producers show signs of easing, except for the core PPI.
• Core inflation in the US is showing signs of being stickier than estimated.
• USD/CHF Price Analysis: Break above 0.9630 puts the 0.9700 figure in play; otherwise, a fall toward 0.9420 is on the cards.

The USD/CHF is trading sideways after rising 0.82% on Tuesday as a reaction to US inflation data showing signs that it’s easing in plain vanilla CPI. Still, core inflation is edging higher on the consumer and producer side, as the US Department of Labor reported. Therefore, the USD/CHF remained almost unchanged but slightly down 0.01%, trading at 0.9613.

USD/CHF Price Analysis: Technical outlook

On Wednesday, the USD/CHF daily chart depicts the pair as neutral-to-downward biased, and it’s worth noting that earlier, the major tested the weekly high at around 0.9633, but broad US dollar weakness put a lid on higher USD/CHF prices.

Meanwhile, the USD/CHF four-hour scale illustrates the pair consolidating above the 20-EMA and the daily pivot point, each at 0.9576 and 0.9574, respectively. Additionally, the 200-EMA at 0.9612 is acting as resistance, keeping the USD/CHF prices subdued and unable to break the daily high at 0.9630.

A clear break above the 200-EMA would open the door for a test of Wednesday’s high at 0.9630, which, once cleared, the major could rally to the R1 pivot point at 0.9668. The break above would expose the confluence of the 50 and 100-EMAs at 0.9700.

On the flip side, the USD/CHF first support would be the confluence of the 20-EMA and the central pivot at 0.9574-76. A breach of the latter will expose the S1 pivot at 0.9515, followed by the September 13 low at 0.9479, followed by the S2 pivot point at 0.9421.

USD/CHF Key Technical Levels