Ichimoku analysis (4-Hour chart)
Tenken-Sen- 0.89967
Kijun-Sen- 0.89857
USDCHF is trading in a narrow range between 0.90297 and 0.89340 for the past five days. Any major trend continuation only if it breaks the 0.9030 level. The pair has shown a minor pullback after eight weeks of a bearish trend. The board-based US dollar selling is putting pressure on this pair at higher levels. The US dollar index is holding well below 90 and a breach below 89.20 confirms further weakness. Markets eye US ISM manufacturing PMI and construction spending 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 4- Hour Tenken-Sen and below kijun-Sen. The near-term support is around 0.8980. Any indicative break below 0.8970 will take the pair to next level to 0.8920/0.8900/0.8870/0.8835. On the higher side, near-term resistance is around 0.9030. Any breach above targets 0.9045/0.9075/0.9095/0.9150.
Indicator (4-Hour chart)
CAM indicator – Neutral
Directional movement index – bullish
It is good to buy above 0.9030 with SL around 0.8990 for a TP of 0.9100.
