FxWirePro- USDCHF Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 0.94314

Kijun-Sen- 0.94146

USDCHF has recovered after a minor correction till 0.94039 on board-based US dollar buying. The surge in US bond yield and positive economic data is supporting the US dollar index. US President Biden unveiled a more than $2 trillion infrastructure and economic recovery package as part of "Build Back Better". The US 10-year bond yield declined more than 2.5% after forming a minor top around 1.77%. US dollar index is trading slightly above 93 levels. The index has closed above 200- day EMA for the past three days. A jump till 94.30 is possible. USDCHF hits an intraday high of 0.94497 and is currently trading around 0.94178.               

The number of private jobs added in the US rose to 517K in mar well above the upwardly revised previous month 176K. But less than the estimate of 552k. US Pending home sales fell by 10.6% in Feb compared to a forecast of -3.1%. Markets eye US ISM manufacturing index for further direction.

The pair is facing significant resistance at 0.9465 (61.8% fib 0.9900 and 0.87545); a violation above this confirms further bullishness. A jump till 0.94715/0.9500. On the lower side, significant support stands at 0.9370, any indicative break below targets 0.9300/0.9260/0.9200.

Ichimoku Analysis- The pair is trading above 4-hour Kijun-Sen, Tenken-Sen, and cloud. Minor weakness only if it breaks 0.9370.

Indicator (4-hour chart)

CAM indicator – Bullish

Directional movement index – Bullish

It is good to buy on dips around 0.9408-10 with SL around 0.9360 for a TP of 0.95000.