The currency pair fell 0.34% after US Treasury yields declined, halting the Greenback’s six-day winning streak despite strong inflation data.
The USD/CHF pair retreated below 0.8100 on Thursday, shedding 0.34% as US Treasury yields declined, interrupting the dollar’s six-session rally. The move occurred despite a higher-than-expected US Core PCE inflation reading, which typically supports the dollar.
Prior to the pullback, the pair had climbed to a year-to-date high of 0.8139, driven by robust dollar demand. Technical indicators now suggest a potential short-term correction, with a ‘tweezers-top’ pattern forming, signaling a possible shift in momentum.
Support levels are eyed at 0.8050 and 0.8000, with a break below the latter exposing the 200-day SMA near 0.7910. Resistance remains at 0.8100 and the recent peak of 0.8139.