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USD/CHF looks like it’s ready for a big move ahead of the U.S. CPI release.

Which direction will it trade in the next couple of hours?

Before moving on, ICYMI, today’s Daily Asia-London Session Watchlist checked out EUR/JPY’s Fib retracement levels ahead of the ECB’s policy announcement. Be sure to check that out to see if there is still a potential play!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Economic Calendar:

What to Watch: USD/CHF

USD/CHF 4-hour Forex Chart
USD/CHF 4-hour Forex Chart

USD/CHF is bouncing from the .8955 range support that hasn’t been broken since mid-May. In fact, the bulls just worked their butts off closing a candlestick that hit a .8925 low!

Today’s U.S. CPI release just might give the dollar the boost it needs to continue trading in the range.

Markets expect consumer prices to rise at a slower pace in May after seeing a yuuuge jump in April. Leading indicators are seeing “unprecedented” levels, though, which opens the possibility of another month of upside inflation surprises.

If prices rise faster than what analysts had expected, then risk aversion and expectations of the Fed tapering or tightening sooner than expected could boost the U.S. dollar across the board.

But if today’s numbers result in dollar weakness, then USD/CHF could retest key support levels like .8925 or .8880.