USDCHF showed a minor pullback after two days of a bearish trend. Markets eye SNB chairman Jordan's speech for further direction. It hits an intraday high of 0.99233 and is currently trading around 0.99177.
Markets eye US mid-term elections and CPI data for further direction.
The US 10-year yield recovered after a minor sell-off to 4.125%. The US 10 and 2-year spread narrowed to -50 basis points from -67 bpbs.
According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Dec increased to 43.2% from 38.5% a day ago.
Technically in the 4-hour chart, the pair is holding below short-term (21 and 55 EMA) and above long-term 200 EMA (0.99205). Any break below 0.9870 confirms further bearishness; a dip to 0.9840/0.9800 is possible.
The near-term resistance is around 0.9935 and any breach above targets 0.9965/1.000/1.00350/1.00750/1.0150. 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 0.9948-50 with SL around 1.00 for the TP of 0.9845/0.9800.


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