The pair lost more than 150 pips on board-based US dollar selling. It has slumped sharply after weak US economic data.US Philly fed manufacturing index slumps to a 2-year low in May at 2.6 compared to a forecast of 14.90. Existing home sales dropped to 5.61M vs. 5.75M the previous month. The number of people who have filed for unemployment benefits rose to 218000 last week. According to the CME Fed watch tool, the probability of a 50 bpbs rate hike increased to 93.50% from 86.4% a week ago.USDCHF hits an intraday low of 0.90750 and is currently trading around 0.97088.
Bullish scenario-
The primary level to Watch – is 0.9780. Any break above shows a minor bullishness. A jump to 0.9850/0.9900. is possible. Significant bullish continuation only if it breaks 1.0070.
Bearish scenario-
Intraday support – 0.9700. Break below that level will take the pair to 0.9660/0.9600.
Indicators (4-hour chart)
Directional movement index – Bearish
CCI (50) - bearish
It is good to sell on rallies around 0.9748-50 with SL around 0.9800 for a TP of 0.9600.
