After initially being rejected by the 0.9370 resistance line and then later subdued by the Tenkan-sen and Kijun-sen lines of the Ichimoku Kinko Hyo(9,26,52) in the prior European session, the thirty-minute price action of the USDCHF rose from the ashes as the support along the 0.9335 price point intensified upon the release of the weaker than anticipated print of the American CPI and Retail Sales figures. The 0.9370 price level was easily breached and the 0.9408 resistance line soon followed. Although the 0.9444 price mark impeded further northward movement, the US dollar managed to appreciate 69 pips opposite the Swiss franc to a 0.9432 price quote by close of the North American session.

The more-than 130-pip ascent of the USDCHF in the past two trading days has been more than impressive for the bulls longing to reclaim the 0.9600 price area. Now that the 0.9400 price zone has been recaptured, the Greenback-Swissie is expected to take a breather as it prepares to attack the 0.9545 objective by the end of this week or early next week.

A slowdown in the pace is necessary. The path coursed through in the previous two days has become too steep to be sustainable and likely exposes the bulls to vulnerability. Over at the daily charts, the Kumo fans out along the 0.9133 support level to less than 20 pips. Compare this with the expanse late last year when the cloud stretched at least 500 pips to support the race towards the 0.9600 price zone.

In the thirty-minute time allotment, the support is nothing short of firm. A pullback beyond the 0.9370 support level is unlikely given the massive occupation of the Kumo around the round number 0.9400.

Nonetheless, the outlook for today is on the downside. The support handle marked at the 0.9444 price level may hold out against bearish pressure now. But the release of the minutes of the Federal Open Market Committee meeting is expected to amplify the selling pressure exerted by the 0.9469 resistance line so that the 0.9444 support line collapses.

Further up lie two other notable resistive layers: 0.9486 and 0.9520. These two serve as the gateway towards the 0.9500 price region. Unless the USDCHF carves out a support base at the 0.9400 price area, the rally towards the 0.9600 price zone is unlikely to materialize. With these, we are short USDCHF for the upcoming deals.