USD/CHF Price Analysis: Snaps two-day winning streak, pullback from 0.9000 appears elusive

• USD/CHF pares weekly gains amid pre-data anxiety, stays above the key support lines.
• 200-SMA, monthly resistance line challenge buyers even as MACD prints bullish signals.
• Sellers need validation from 0.8900 to retake control.
• Swiss Real Retail Sales, US Core PCE Price Index eyed for clear directions.

USD/CHF takes offers to refresh intraday low near 0.8980 as it consolidates the weekly gains, the second one in a row, heading into Friday’s European session. In doing so, the Swiss Franc (CHF) pair portrays the market’s positioning for the Swiss Real Retail Sales for May and US Core Personal Consumption Expenditure (PCE) Price Index for May, also known as the Federal Reserve’s (Fed) favorite inflation gauge.

Also read: USD/CHF seesaws near 0.9000 ahead of Swiss Retail Sales, Fed’s favorite inflation clues

It’s worth noting, however, that the USD/CHF pair’s latest retreat appears elusive as the MACD flashes the bullish signals and the price is well above the key support lines.

Hence, the bears remain cautious unless witnessing a clear downside break of the eight-week-old rising support line, close to 0.8925.

Ahead of that, the weekly support line and the 61.8% Fibonacci retracement of its May-June upside, respectively near 0.8950 and 0.8945, can test the USD/CHF bears.

In a case where the pair remains bearish past 0.8925, the odds witnessing a quick slump to the monthly low surrounding the 0.8900 round figure and then to the yearly low marked in May around 0.8820 can’t be ruled out.

Alternatively, the 200-SMA level of around 0.9015 precedes a downward-sloping trend line from May 31, close to 0.9020 at the latest, to restrict short-term upside of the USD/CHF pair.

USD/CHF: Four-hour chart

Trend: limited downside expected