SNB vice chair Schlegel is speaking and says:
- Swiss inflation is low in international comparison but still too high
- Swiss inflation is above the level we associate with price stability
- We cannot rule out further interest rate hikes to bring inflation under control
Looking at the hourly chart of the USDCHF above, the pair is testing it's a 200 hour moving average (green line in the chart above) and 50% midpoint of the move down from last week's high. Both those levels come in and near 0.89895.
Earlier today, the price did move above that dual technical level peaking just above the 0.9000 level at 0.9002. However momentum could not be sustained, and the price rotated back to the downside retesting the lows for the day and the broken 38.2% retracement at 0.89587.
Like other currency pairs, the USDCHF pair is mired in up-and-down trading this week and especially over the last 2 trading days. That has allowed the 200 hour moving average (green line in the chart above) to catch up with the price. Getting above that moving average increases the bullish bias and would have traders looking toward the 0.9000 level followed by the 61.8% retracement and a downward sloping trendline near 0.90202.
Conversely, staying below the 200 hour MA, keeps the sellers in play with the 38.2% retracement at 0.89587 and the rising 100 hour moving average at 0.89455 as the next downside targets.
