The pair gained above 200-H MA on US pullback after upbeat US ISM manufacturing data. It rose to 56.1 in May compared to a forecast of 54.40. According to the Fed watch tool, the probability for a 50 bpbs rate hike in jumped to 99.30% from 93.3% a week ago. USDCHF hits an intraday low of 0.95750 and is currently trading around 0.95862.
The private US payrolls came to 128K in May, compared to a forecast of 295K. The number of people who have filed for unemployment benefits dropped to 200K last week vs. an estimate of 210K.
Bullish scenario-
The primary level to Watch – is 0.9660. Any convincing surge above confirms intraday bullishness. A jump to 0.9700/0.9765 is possible.
Bearish scenario-
Intraday support – 0.9520 (resistance turned into support). Break below that level will take the pair to 0.9460/0.9430/0.9380.
Indicators (Daily chart)
Directional movement index – Neutral
CCI (50) - Neutral
It is good to sell on rallies around 0.9650 with SL around 0.9700 for a TP of 0.9500.
