FxWirePro- USDCHF Daily Outlook

Ichimoku analysis (Hourly chart)

Tenken-Sen- 0.90453

Kijun-Sen- 0.90596

USDCHF has declined sharply after a minor pullback above 200-H MA. The intraday trend is weak as long as resistance 0.91025 holds. The US dollar was one of the best performers in the past two days on account of the surge in inflation. The US Producer price index rose by 0.6% in Apr compared to a forecast of 0.3%. The annual inflation jumped to 6.2% vs an estimate of 3.8%. The number of people who have applied for unemployment benefits declined to 473000 estimates of 490000.  The US 10-year yield lost more than 3% from a high of 1.705% made on May 12th, 2021. Markets eye US retail sales data for further direction. The long-term trend is still on the downside as long as resistance 0.94725 holds.

Intraday day outlook:

Trend- Bearish

The pair is holding above 100-H MA, Tenken-Sen and Kijun-Sen. The pair should break above 0.9075 for further bullishness. Any jump above 0.90750 will take the pair to next level to 0.9090/0.9120/0.9165. On the lower side, near-term support is around 0.8980. Any dip below that level targets 0.8870/0.8830/0.8750.   

Indicator (Hourly chart)

CAM indicator – Neutral

Directional movement index – Neutral

It is good to sell on rallies around 0.9048-50 with SL around 0.9090 for a TP of 0.0.8850.