The U.S. dollar is struggling once again today, shedding value across the forex. This morning’s movers have been the EUR/USD (+0.12%), USD/CHF (-0.28%), USD/JPY (+0.10%), and GBP/USD (+0.23%). For the USD/CHF, rates are on the cusp of a key weekly Fibonacci support level.

On the economic news front, there were a few noteworthy items on the Wednesday calendar. Here are the highlights:

Event                                                                   Actual                  Projected           Previous

MBA 30-Year Mortgage Rate (Feb. 5)                 2.96%                       NA                      2.92%

Core Inflation Rate (MoM, Jan.)                           0.0%                        0.2%                    0.0%

Core Inflation Rate (YoY, Jan.)                              1.4%                         1.5%                    1.6%

Inflation Rate (MoM, Jan.)                                      0.3%                        0.3%                    0.2%

All in all, the Fed won’t look kindly on this group of stats. Once again, inflation has come in stagnant despite 0% rates and enormous amounts of Treasury purchases. At least to kick off 2021, inflation has been static. However, mortgage rates continue to tick higher to open the new year. Will rising borrowing rates derail 2021’s U.S. housing market? Not likely; the Fed appears committed to flooding American lenders and consumers with historically cheap money.

Let’s dig into the USD/CHF technicals and see if we can spot a trade or two.

USD/CHF Plunges Toward Weekly Support

It has been a rough week for USD/CHF bulls. Rates are on a firm decline, trading just beneath the 0.8900 handle.

Here are two levels worth watching until the weekend break:

• Resistance(1): Weekly SMA, 0.8929
• Support(1): 62% Current Wave, 0.8869

Bottom Line: In the event that the USD/CHF continues its bearish ways, a buying opportunity may come into play later this week. Until Friday’s closing bell, I’ll have buy orders in the queue from 0.8876. With an initial stop loss located at 0.8846, this trade produces 30 pips on a standard 1:1 risk vs reward ratio.