FxWirePro- USDCHF Trade idea

The currency pair pared some of its gains after weak US CPI. It hit a low of 0.90795 and is currently trading around 0.91158. The intraday bias appears bullish as long as the support level at 0.9000 holds.

US CPI data from January 15, 2025, delivered inflationary perspectives; it moved up to 2.9% on a yearly basis for December from the previous month, November, where it was recorded at 2.7%. It also moved above the predicted figure of 2.8%. On a monthly basis, it rose 0.4% against a forecast of 0.3%. The core CPI, however, removes food and energy's influence and rose to 3.2% from analysts' expectations at 3.3%. The major contributor to the rising CPI was a rise of 2.6% in energy. Gasoline prices surged 4.4%. Following this report, the US stock futures surged, and Treasury yields dropped. The mixed result is likely to see the interest rates at least unchanged in their next meeting with the Federal Reserve but might resort to cuts when inflation goes soft enough.

Technical Analysis and Resistance Levels

The pair is trading below the 34-EMA and above the 55-EMA on the 4-hour chart indicating a mixed trend. The immediate resistance is at 0.9150 any break below targets  0.9200/0.92250/0.9275. 

Support Levels and Potential Declines

On the downside, near-term support is around 0.9070, any violation below will drag the pair to 0.9030/0.9000/0.8940/0.8890.

Bullish Indicators

CCI (50) - Bearish
Directional movement Index - bearish

Trading Strategy Recommendation

It is good to sell on rallies around 0.9128-30 with a stop-loss at 0.9180 for a TP of 0.9030.