Ichimoku analysis (4-Hour chart)
Tenken-Sen- 0.89489
Kijun-Sen- 0.89900
USDCHF has formed a double bottom around 0.89262 and shown a minor pullback. The pair is trading holding below 0.9000 for the past four days. Markets eye US CPI data today for further direction. Any upbeat inflation data will force the Fed to taper the bond-buying program. This will be positive for the US dollar. The US 10-year bond yield is trading weak and trading below the 1.50% level. The dollar index is holding above 90 levels, minor bullishness only if it breaks 90.60. 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 below 4- Hour Kijun-Sen, cloud, and slightly above Tenken-Sen. The near-term support is around 0.8920. Any indicative break below will take the pair to next level to 0.8920. On the higher side, near-term resistance is around 0.9030. Any convincing breach above targets 0.9055/0.9075/0.9095/0.9150.
Indicator (1-Hour chart)
RSI – Neutral
Directional movement index – Bearish
It is good to sell on rallies around 0.9000 with SL around 0.9035 for a TP of 0.8920.
