USDCHF surged sharply after upbeat US PI data. The inflation rose 0.40% in Sep MoM and yearly CPI rose to 8.2% vs an estimate of 8.1%. US 10-year bond yields gained above 4% and hit a fresh 12-year high.
According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Nov rose to 95.8% from 75.2% a week ago.
Technically in the 4-hour chart, the pair is holding above short-term (21- and 55 EMA) and 200 EMA (0.97728). Any break below 1.0020 will take the pair to 1/0.9960/0.9900. USDCHF had an intraday high of 1.00735 and is currently trading around 1.00349.
The near-term resistance is around 1.00750 and any breach above targets is 1.0125.
Indicators (4-hour chart)
CCI (50)- Bullish
ADX- Bullish
It is good to buy on dips around 1.0020 with SL around 0.9990 for a TP of 1.01250.


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