USD/CHF is slumping for a sixth consecutive session on Wednesday, trading about 0.15% lower around the 0.7990 mark in European hours. The Swiss franc’s outperformance has kept the pair under pressure, as investors price in the likelihood that the Swiss National Bank will avoid cutting rates into negative territory. SNB Chair Martin Schlegel recently noted that with inflation set to edge higher in the coming quarters, policy rates should remain on hold for an extended period.
Looking ahead, traders will turn their attention to Thursday’s Swiss producer and import price indices for October. Meanwhile, the US Dollar Index (DXY) has steadied near 99.30 after tumbling to a weekly low on Tuesday, following an ADP report showing average private-sector payroll losses of 11,250 jobs per week in the latest four-week period.
On the charts, USD/CHF remains below its 200-day EMA at roughly 0.8217, underscoring the prevailing downtrend. The 14-day RSI sits mid-range between 40 and 60, indicative of an ongoing corrective phase. A break below the September 17 low of 0.7829 could pave the way down to 0.7800 and the late-July 2011 trough near 0.7580. On the upside, a rally above the August 1 high at 0.8170 would target resistance around the June 19 peak of 0.8215 and then the June 6 high of 0.8248.
