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FxWirePro- USDCHF Daily Outlook

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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