The USD/CHF pair attracts some dip-buyers on Wednesday and moves further away from the weekly trough, around the 0.8060 region set the previous day.
Spot prices climb to a fresh daily high during the first half of the European session, with bulls looking to build on the momentum further beyond the 0.8100 mark
As investors digest Tuesday’s soft US Consumer Price Index (CPI) data, energy-driven inflation fears resurface as escalating US-Iran tensions and the closure of the Strait of Hormuz remain supportive of elevated crude oil prices. This bolsters US Federal Reserve (Fed) rate hike expectations and offers some support to the US Dollar (USD), which, in turn, acts as a tailwind for the USD/CHF pair and validates the near-term positive outlook. From a technical perspective, the recent breakout through the 200-day Simple Moving Average (SMA) and subsequent strength beyond the 0.8000 psychological mark were key triggers for bullish traders.
Moreover, the Relative Strength Index keeps a constructive bullish tone and stays in positive territory near 58 without yet signaling overbought conditions. This further suggests that underlying demand remains firmly in play. However, the Moving Average Convergence Divergence (MACD) indicator sits slightly below the zero line with a modestly negative reading, hinting that upside momentum is not fully convincing despite the supportive price structure.