USD/CHF drops to fresh 5-week lows ahead of Swiss CPI

The USD/CHF pair shaved-off gains and now mires near fresh multi-week lows as a broadly lower greenback exerts downward pressure heading into the Swiss CPI report to be released post-European open.

USD/CHF eyes 0.9600

Currently, the USD/CHF pair trades almost unchanged at 0.9651, hovering near fresh five-week lows reached at 0.9641 in the last hour. The major remains exposed to further downside as the greenback is expected extend its bearish momentum in response to falling Fed rate hike bets this summer.

While the gains in the Swiss franc remain capped as markets expect a softer reading of Switzerland’s inflation data. The Swiss CPI is expected to tick down 0.2% in May versus 0.3% last.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9705 (5-DMA) and above which it could extend gains to 0.9751 (50-DMA). To the downside, immediate support might be located at 0.9602 (daily S2) and below that 0.9560/30 (May lows).