This month, the pair slumped sharply and lost more than 400 pips on the weak US dollar. Dismal economic data and hawkish comments from the Swiss National bank chairman drag the pair further down. US flash manufacturing PMI dropped to 57.5 in May compared to an estimate of 57.50. Markets eye the US Fed meeting minutes for further direction. According to the CME Fed watch tool, the probability of a 50 bpbs rate hike dropped to 89.80% from 92.30% a day ago.
USDCHF hits a low of 0.95750 and is currently trading around 0.96177.
Bullish scenario-
The primary level to Watch – is 0.9660. Any break above shows a minor bullishness. A jump to 0.9700/0.9760 is possible. Important bullish continuation only if it breaks 1.0070.
Bearish scenario-
Intraday support – 0.9570. Break below that level will take the pair to 0.9500/0.9460.
Indicators (4-hour chart)
Directional movement index – Bearish
CCI (50) - bearish
It is good to sell on rallies around 0.9648-50 with SL around 0.9700 for a TP of 0.9500.
