USD/CHF ends 3-day rally, gives up 0.98 ahead of Swiss CPI

The USD/CHF pair stalled a three-day winning streak and turned negative, despite expectations of a weak Swiss CPI print due later in the European session.

USD/CHF drops below 20-DMA at 0.9802

Currently, the USD/CHF pair trades -0.11% lower at 0.9798, having failed to hold above 0.98 barrier. The major drops this session, largely on the back of a correction in the US dollar versus its six peers after the recent NFP-backed strength.

Moreover, markets take profits off the table after the Swiss franc extended losses for three straight sessions, while focus now shifts towards the Swiss CPI data due later today. Markets expect the Swiss CPI to drop sharply to -0.5% in July versus 0.1% seen last.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9835 (200-DMA) and above which it could extend gains to 0.9900 (round number). To the downside, immediate support might be located at 0.9777 (5-DMA) and below that 0.9757/55 (50 & 100-DMA).