USDCHF has been moving sideways on its daily time frame, bouncing off support around the .9550 minor psychological mark and setting its sights on the resistance just slightly above 1.0000.

Stochastic is pulling higher without reaching the oversold region, reflecting a pickup in bullish pressure. This might be enough to take USDCHF back up to the highs since the oscillator has plenty of room to climb before reaching the overbought area.

RSI, on the other hand, is on the move down and has room to slide before reflecting exhaustion among sellers. This could pave the way for a short-term correction for USDCHF before it heads any further north.

The 100 SMA is also below the 200 SMA to suggest that the path of least resistance is to the downside, although USDCHF has already broken above both dynamic inflection points.

Earlier in the week, the US printed stronger than expected CPI data, hinting that persistent inflationary pressures could force the Fed to hike rates by another 0.75% in their upcoming meeting.

Headline CPI rose from 1.0% to 1.3% versus the forecast at 1.1% while the core version of the report ticked higher from 0.6% to 0.7% instead of dipping to the 0.5% consensus.

The US retail sales report is coming up tomorrow, and this should provide a glimpse of whether or not consumers are struggling from higher price pressures. Headline retail sales could rebound by 0.9% after the earlier 0.3% decline while core consumer spending likely advanced from 0.5% to 0.7%.

Although the SNB also recently hiked interest rates, signaling that the central bank is no longer bent on keeping the franc weak, their increase in borrowing costs is dwarfed by that of the Fed. In addition, the prospect of a global recession on account of rising inflation might also be more bullish for the safe-haven dollar than any other currency.