The USDCHF surged towards the 16-month-long trend after colder than expected CPI data. Swiss consumer inflation fell to 1.3% on a yearly basis from 1.7%, contrary to the expected stability at 1.7%. The significant CPI miss caused the USDCHF to approach the upper line of the trend channel.

(USDCHF Daily Chart)

The US will release the inflation data today as well. If there isn’t any upside surprise, USDCHF might feel downward pressure from the weakening dollar index, and today’s surge might only present a selling opportunity. The 100-day and 200-day moving averages are also creating resistance just below the trendline, increasing its importance. However, if it breaks the trend with an upside CPI surprise, USDCHF might target 0.90 and 0.9240 levels in the coming weeks.