USD/CHF tests support at 0.8310-0.8315 following a 1.7% two-day rally, with technical indicators suggesting a shallow correction as markets anticipate further Fed tightening.
The pair trades at 0.8320 after a 1.7% two-day rally pushed momentum into overbought territory and it pulled back from one-month highs near 0.8340, testing support at 0.8310-0.8315. The RSI(14) near 67 and positive MACD still show buying pressure, and hot US inflation plus strong employment data back a December Fed hike, so dips are expected to stay shallow. A corrective pullback is the most likely short-term move, with limited downside.
The USD/CHF pair trades at 0.8320, retreating from one-month highs near 0.8340 as momentum indicators cool from overbought levels. Despite the intraday pullback, the broader outlook remains supported by strong US inflation and employment data, which reinforce expectations for a Federal Reserve rate hike in December.
The pullback is a correction from overbought levels after a 1.7% two-day rally. Hot US inflation and strong jobs data support another Fed rate hike in December, so any dips are expected to remain shallow near the 0.8310-0.8315 support zone.
Support sits at previous highs around 0.8310-0.8315, with the November 10 high near 0.8270 below. On the upside, a break above 0.8337 would expose the October 14 high at 0.8395.