FxWirePro- USDCHF Daily Outlook

USDCHF showed a minor pullback after hitting a low of 0.9800. Markets eye US CPI data for further direction. The Swiss franc was one of the best performers as risk appetite diminished.   The sell-off in crypto extended to global stock markets. The weak US economic data and dovish comments from Fed officials put pressure on the US dollar at higher levels. It hits an intraday high of 0.98699 and is currently trading around 0.98971.

According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Dec rose to 54.4% from 51.5% a week ago.

The US 10-year yield pared its gains after hitting a high of 4.23%. The US 10 and 2-year spread narrowed to -52.50 basis points from -67 bpbs.

 Technically in the 4-hour chart, the pair is holding below short-term (21 and 55 EMA) and long-term 200 EMA (0.99119). Any break below 0.98000 confirms further bearishness; a dip to 0.9760/0.9700 is possible.

 The near-term resistance is around 0.9880 and any breach above targets 0.9930/1.000/1.00350. Significant trend continuation only if it breaks 1.0150. 

Indicators (4-hour chart)

CCI (50) - Bearish

ADX- Neutral

It is good to sell on rallies around 0.9878-80 with SL around 0.9930 for the TP of 0.9765.