The USD/CHF pair is experiencing a slight decline near 0.8980 during Friday’s European session, consolidating its second consecutive weekly gains. Traders are closely monitoring the Swiss Real Retail Sales for May and the US Core Personal Consumption Expenditure (PCE) Price Index for May, which is considered the Federal Reserve’s preferred inflation indicator.
Despite the recent retreat, it is important to note that the MACD indicator is signaling a bullish trend, and the price remains comfortably above important support levels.
Therefore, bearish sentiment is tempered unless a clear downside break occurs below the eight-week rising support line, located around 0.8925.
Prior to that, the USD/CHF bears may encounter the weekly support line around 0.8950 and the 61.8% Fibonacci retracement level of the upward move from May to June, near 0.8945.
If the pair continues to decline below 0.8925, there is a possibility of a rapid drop towards the monthly low around the 0.8900 level, followed by a potential test of the yearly low established in May around 0.8820.
On the upside, before any potential rally, the USD/CHF pair faces resistance at the 200-day Simple Moving Average (SMA) level around 0.9015. Additionally, there is a downward-sloping trend line originating from May 31, which currently hampers short-term upside near 0.9020.
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