USDCHF pared some of its gains on profit booking. The pair was one of the best performers in the past week and surged more than 500 pips on board-based US dollar buying. The Fed meeting minutes confirm there might be another two 75 bpbs rate hikes this year. US 10-year bond yields gained above 4% and hit a fresh 12-year high.
According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Nov rose to 97.4% from 81.10% a week ago.
Technically in the 4-hour chart, the pair is holding above short-term (21- and 55 EMA) and 200 EMA (0.97728). Any break below 1 will take the pair to 0.9960/0.9900. USDCHF had an intraday low of 0.99921 and is currently trading around 1.00232.
The near-term resistance is around 1.00750 and any breach above targets is 1.0125.
Indicators (4-hour chart)
CCI (50)- Bullish
ADX- Bullish
It is good to buy on dips around 1 with SL around 0.9960 for a TP of 1.01250.


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