USD/CHF Soars as Swiss CPI Defies Expectations, Eyes Further Gains

The USDCHF surged more than 80 pips after the release of Swiss CPI data. It hits an intraday high of 0.80941 and is currently trading around 0.080830.

Defying predictions of a 0.2% drop and remaining stable after a 0.2% increase in June, the Swiss Consumer Price Index (CPI) for July 2025 showed a flat monthly number of 0.0%. With inflation hovering at 0.2% annually, it somewhat outpaced market estimates as well as the previous month's 0.1%. Driven by price hikes in industries like restaurants/hotels, housing/energy, and communication, this small rise in inflation—balanced out by declines in food, transportation, and furnishings—could ease near-term pressure on the Swiss National Bank (SNB) to carry out rate reductions, notwithstanding a varied economic climate characterized by poor manufacturing statistics and global trade tensions.

Technical Analysis Points to Further Upside

The pair is trading above the   55-EMA,  200 EMA, and below the 365 EMA on the 4-hour chart, indicating a mixed trend. The immediate resistance is at  0.8100, any break above targets 0.8135/0.8170/0.8215/0.8250.

Support Levels and Potential Declines

On the downside, near-term support is around 0.8060; any violation below will drag the pair to 0.8040/ 0.8020/0.7980/0.7920/0.7860/0.780.

Indicators (1-hour chart)

CCI (50) - Bearish

Directional Movement Index -  Neutral

Trading Strategy Recommendation

It is good to buy on dips around 0.8040 with a stop-loss at 0.800 for a TP of 0.8170/0.8215.