USD/CHF Surges on Dollar Strength: Buy the Dip for Potential Gains to 0.8378?

USDCHF jumped sharply above 0.8300 on board-based US dollar buying. It hit a high of 0.83480 and is currently trading around 0.82992. Intraday bias appears to be bullish as long as the support 0.8180 holds. 

Rising to -9 from -13 in April, the Richmond Manufacturing Index for May 2025 revealed a modest improvement; but, with main indicators indicating that although manufacturing activity in the Fifth District remains contractionary, future expectations and components like shipments and new orders are exhibiting signs of improvement, along with a rise in the vendor lead time and backlog of orders indices; enterprises foresee increased price received and paid throughout the following 12 months.

Technical Analysis Points to Further Upside

The pair is trading above the   55-EMA, below  200 EMA and 365 EMA on the 1-hour chart indicating a mixed trend. The immediate resistance is at  0.8350 any break above targets 0.8375/0.8435/0.8480.

Support Levels and Potential Declines

On the downside, near-term support is around 0.8250, any violation below will drag the pair to 0.8200/0.8180/0.8135/0.8090/0.8000.

Bullish  Indicators (1-Hour)

CCI (50) - Bullish

Directional movement Index -  neutral

Trading Strategy Recommendation

It is good to buy on dips around 0.8258-60 with a stop-loss at 0.82220 for a TP of 0.8378/0.8405.