The USD/CHF remained volatile around 0.88527. Switzerland’s overall inflation rate unexpectedly remained at 1.6% in August, compared with expectations for a drop to 1.5%. At the same time, the year-on-year increase in core CPI fell from 1.7% to 1.5%. The SNB will announce its latest policy decision on September 21. At present, the market expects that it will suspend interest rate hikes, and the probability of raising interest rates by 25 basis points is currently digested at 35%.
US dollar Swiss franc USDCHF - 4-hour K-line chart shows:
Brief technical analysis:
Looking at the 4-hour chart: the bullish momentum is rising at a high level, the market is bullish, and there is a tendency to continue to move upward in the short term. The MACD indicator is in the bullish zone and is slowly rising, and the RSI indicator is weakly consolidating above the 50 equilibrium line;
Resistance: 0.88613 0.88698
Support levels: 0.88406 0.88311
Trading strategy: Bullish above 0.88491, target 0.88613 0.88698
Alternative strategy: bearish below 0.88491, target 0.88406 0.88311