The USD is higher after the CPI data. However, for the USDCHF it extended above the swing high from January 3 at 0.8554, but could not extend above the swing high from January 5 at 0.8576. At the high from January 5, it also corresponded with the 50% of the move down from the December high to the December low. Today’s high reached 0.8563 between the early January highs.
On the downside, traders in the short term will be eyeing close support between 0.8528 and 0.8537. That is a close support that if held, would give the buyers more confidence for a push to the highs. Moving below and below the broken 38.2% retracement at 0.85185 would hurt that bias with the 100 and 200-hour MAs below as other targets to eye for support.
This article was written by Greg Michalowski at www.forexlive.com. Source