FxWirePro- USDCHF Daily Outlook

USDCHF has formed a double top around 1.0070 and shown a minor decline due to profit booking.  The pair trades in a narrow range between 1.0708 and 0.99185 for the past week.  The number of people who have filed for unemployment benefits in the week ending Oct 15 dropped to 214K compared to a forecast of 229k. US Philly fed manufacturing index declined to -8.7 in Oct vs. -5 estimate.US 10-year yield hits fresh 14-year high in hopes of another two 75 bpbs rate hikes by the fed this year. The US 10 and 2-year spread narrowed to -44 basis points from -57 bpbs.

According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Nov rose to 99.10% from 97.30% a week ago.

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 Technically in the 4-hour chart, the pair is holding above short-term (21- and 55 EMA) and above 200 EMA (0.98472). Any break above 1.0075 confirms a bullish continuation; a jump to 1.0125/1.0150 is possible. It hits an intraday low of 1.00062 and is currently trading around 1.00373.

The near-term support is around 1.000 and any breach below targets is 0.9960/0.9900.

Indicators (4-hour chart)

CCI (50)- Bullish

ADX- Bullish

It is good to buy on dips around 1.000 with SL around 0.9960 for a TP of 1.0075/1.0120.