The pair recovered strongly on board-based US dollar buying. The surge in inflation and upbeat US jobs data has increased the chance of aggressive rate hikes by the Fed. According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Jul increased to 13.8% from 2.3% a week ago. The jump in US treasury yields also supports the US dollar at lower levels. USDCHF hits a high of 0.97535 and is currently trading around 0.97499.
Bullish scenario-
The primary level to Watch – is 0.9765. Any convincing surge above confirms intraday bullishness. A jump to 0.9810/0.98650 is possible.
Bearish scenario-
Intraday support – 0.9660. Break below that level will take the pair to 0.9600/0.9520/0.9460/0.9430/0.9380.
Indicators (4-Hour chart)
Directional movement index – Bullish
CCI (50) - Bullish
It is good to buy on dips around 0.9748-50 with SL around 0.9700 for a TP of 0.9845.


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