The pair remains above 0.8000 support despite a weaker USD after softer US inflation data reduced immediate Fed tightening expectations.
The USD/CHF pair trades around 0.8060 in early European trading, failing to extend gains after touching a weekly low. A pullback in the US Dollar followed softer US inflation figures, which diminished expectations for an immediate Federal Reserve rate hike.
Technical levels show the pair holding above the 0.8000 mark, now acting as support, and the 200-day Simple Moving Average. While the Relative Strength Index (RSI) near 52 signals neutral-to-positive momentum, the Moving Average Convergence Divergence (MACD) below zero suggests cautious upside potential.
Geopolitical tensions and lingering energy concerns keep Fed rate hike prospects alive, providing some support for the safe-haven USD. Downside risks appear limited as buyers are expected to defend the 0.8000 level.