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FxWirePro- USDCHF Daily Outlook

USDCHF pared some of its gains on profit booking. The pair was one of the best performers in the past week and surged more than 500 pips on board-based US dollar buying. The Fed meeting minutes confirm there might be another two 75 bpbs rate hikes this year. 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 97.4% from 81.10% 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 will take the pair to 0.9960/0.9900. USDCHF had an intraday low of 0.99921 and is currently trading around 1.00232.

 

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 with SL around 0.9960 for a TP of 1.01250.

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