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FxWirePro- USDCHF Daily Outlook

FxWirePro- USDCHF Daily Outlook

USDCHF declined sharply the previous week after hitting a multi-week high of 1.01472. The board-based US dollar weakness, geo-political tension, and UK political uncertainty have increased demand for safe-haven assets like the Swiss franc. US flash manufacturing and services PMI came at 49.9 and 46.60, below expectation levels. The US 10-year yield declined more than 4% after hitting a multi-year high of 4.33%. The US 10 and 2-year spread narrowed to -30 basis points from -57 bpbs.
 
 According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Nov rose to 97.2% from 95.9% a week ago.
Technically in the 4-hour chart, the pair is holding below short-term (21EMA), above 55 and  200 EMA (0.98744). Any break above 1.00320 confirms intraday bullishness; a jump to 1.00750/1.015 is possible. It hits an intraday low of 1.00293 and is currently trading around 1.00269.
 The near-term support is around 1.000 and any breach below targets is 0.9940/0.9900/0.9860.
 
Indicators (4-hour chart)
 
CCI (50)- Neutral
 
ADX- Neutral 
 
It is good to buy on dips around 1.000 with SL around 0.9940 for a TP of 1.0140.
 

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