The pair is trading weak for the past five days and declined more than 400 pips. The hawkish comments from the SNB chairman and increase in demand for safe-haven assets support the Swiss franc. Markets eye the US Fed Chairman's speech and flash manufacturing PMI for further direction. According to the CME Fed watch tool, the probability of a 50 bpbs rate hike dropped to 88.8% from 94.9% a day ago.
USDCHF hits an intraday low of 0.96104 and is currently trading around 0.96285.
Bullish scenario-
The primary level to Watch – is 0.9760. Any break above shows a minor bullishness. A jump to 0.9850/0.9900 is possible. Significant bullish continuation only if it breaks 1.0070.
Bearish scenario-
Intraday support – 0.9600. Break below that level will take the pair to 0.9500/0.9460.
Indicators (4-hour chart)
Directional movement index – Bearish
CCI (50) - bearish
It is good to sell on rallies around 0.9648-50 with SL around 0.9700 for a TP of 0.9500.