FxWirePro- USDCHF Daily Outlook

Ichimoku analysis (1-Hour chart)

 Tenken-Sen- 0.89757

Kijun-Sen- 0.89773

USDCHF is consolidating after hitting a low of 0.89538 on board-based US dollar selling. The pair was one of the worst performers for the past seven weeks and declined more than 5.5%. The decline in US bond yields is also putting pressure on this pair.  The US 10-year bond yield lost more than 4.5% after forming a minor top around 1.705%. The manufacturing PMI jumped to 61.5 in Apr vs an estimate of 60. The services PMI hits record high 70 points in May well above forecast 64.3.  The US dollar index upside capped by 200- H MA, any breach above 90.21 confirms intraday bullishness. The long-term trend is still on the downside as long as resistance 0.94725 holds.

Intraday day outlook:

Trend- Neutral

The pair is holding below Hourly Kijun-Sen, Tenken-Sen, and cloud. The near-term support is around 0.8960. Any close below 0.8960 will take the pair to next level to 0.8900/0.8835. On the higher side, near-term resistance is around 0.9050. Any breach above targets 0.90925/0.9150.   

Indicator (1-Hour chart)

CAM indicator – Neutral

Directional movement index – Neutral

It is good to sell on rallies around 0.9018-20 with SL around 0.9050 for a TP of 0.8900.