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FxWirePro –USDCHF Daily Outlook

Intraday bias - Bearish

 

USDCHF lost more than 250 pips in the past three weeks due to board-based US dollar selling. The US dollar index lost its shine after a dovish rate hike. The chance of an aggressive rate hike by the Fed diminished on weak US economic data. According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Sep rose to 70.5% a week ago. Technically in the 4-hour chart, the pair is holding below the short-term (21- and 55 EMA) and long-term moving average of 200 EMA (0.9676). Any close below 0.9500 confirms intraday bearishness. A dip to 0.9470/0.9420 is possible.  USDCHF hits an intraday low of 0.94971 and is currently trading around 0.95089.

 

The near-term resistance is around 0.95350 any breach above targets 0.9600/0.9660.

 

Indicators (4- Hour chart)

 

CCI (50)- Bearish

 

ADX- Bearish

 

It is good to sell on rallies around 0.9548-50 with SL around 0.9600 for TP of 0.9.

 

 

 

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