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FxWirePro- USDCHF Daily Outlook

USDCHF recovered sharply after a minor weakness. The pair did a fake downside break out and gained after hawkish comments by the Minneapolis Fed president. US 10-year yield hits fresh 14-year high in hopes of another two 75 bpbs rate hikes by fed this year. The US 10 and 2-year spread narrowed to -44 basis points from -57 bpbs.

 

According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Nov rose to 93.5% from 81.3% a week ago.

 Technically in the 4-hour chart, the pair is holding above short-term (21- and 55 EMA) and above 200 EMA (0.98368). Any break above 1.0075 confirms a bullish continuation; a jump to 1.0125/1.0150 is possible. It hits an intraday high of 1.00453 and is currently trading around 1.00252.

 

The near-term support is around 1.000 and any breach below targets is 0.9960/0.9900.

 

Indicators (4-hour chart)

 

CCI (50)- Bullish

 

ADX- Bullish

 

It is good to buy on dips around 1.000 with SL around 0.9960 for a TP of 1.0075/1.0120.

 

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