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  • The US Dollar (USD) witnesses short-covering moves amid holiday thin trading session.
  • Swiss Consumer Price Index (CPI) data for June will be the key to follow in addition to risk catalysts.

While USD recovery pulls the USD/CHF pair back from recent lows, 21-day simple moving average (21-DMA) continues to limit near-term upside as the quote seesaws near 0.9863 during early Thursday.

Even if sluggish data from the US and expectations of the Federal Reserve’s rate cut keep exerting downside pressure on the pair, absence of disappointment from recently published employment data increases the odds for an upbeat job report to arrive on Friday.

The US Independence day holiday results in the early Wall Street close and extended recently positive momentum towards cheering trade positive news that the US-China diplomats will be in touch for the trade matter during next week.

While the US holiday can limit the data flow, the June month CPI numbers from Switzerland could entertain the traders. The headline inflation statistics indicate low price pressure as the CPI MoM is expected to decline -0.1% versus 0.3% prior while its yearly counterpart could retrace to 0.5% from 0.6% previous readouts.

In addition to the Swiss CPI, trade and political headlines affecting risk sentiment should also be observed closely.

Technical Analysis

A successful break of 21-DMA level of 0.9870 can trigger the pair’s rise towards 0.9950 and 50-DMA level around 1.0000 psychological magnet. However, 0.9815, 0.9780 and 0.9693 can continue pleasing sellers during additional declines.