USDCHF gives back CPI gains as focus shifts to the weaker data today and lower yields | Forexlive

The USDCHF is moving lower and in the process, is retracing the gains from Tuesday after the stronger-than-expected US CPI data. Today, the US retail sales came out weaker than expectations – pushing the greenback lower. Yields are lower with the 10 year down -6.2 basis points which is also helping the downside bias for the USD in trading today.

Technically, the USDCHF was already moving lower in the European session after breaking back below its 200-day moving average at 0.8846 in the late Asian session/early European session. Recall that on Tuesday after the CPI, the price moved above that 200-day moving average for the first time since mid-November. In the process, it tilted the technical bias even more to the upside. The failure today, however, turned buyers to sellers. Selling intensified.

The move to the downside has now taken the price below its 100-hour moving average is 0.8806, and it 100-day moving average just below that level at 0.8802. The next key target on the downside is the rising 200-hour moving average of 0.8763. The current price is trading at 0.8788.

Nearly all the gains of the CPI have now been erased. It would now take a move back above the 100-day moving average and 100-day moving average to shift the short-term buyers back in favor of the buyers.