After the Friday drop last week, the stronger Swiss inflation numbers on Monday pushed the pair towards 0.9300 before catching a bounce yesterday. The rebound amid Fed chair Powell's more hawkish remarks helped to see USD/CHF run into yet another test of its 100-day moving average (red line), which it is now pushing just above.
A firm break there will be a win for buyers in trying to find a bit more of a relief after having seen the pair drop from parity all the way to just below 0.9100 since November.
But among all the other dollar pairs, this is one that might be hard to really push through with much conviction for a further bounce.
While the Fed is perhaps going to stay more aggressive, the same can be said for the SNB - especially after having seen the inflation numbers on Monday here. The Swiss central bank has not wavered from their policy approach, since surprising markets with a hawkish turnaround in June last year.
From a technical perspective, a push above the 100-day moving average for USD/CHF will put the focus next on the 38.2 Fib retracement level of the swing lower since November, seen at 0.9475, next.
