USDCHF recovered more than 50 pips after a massive sell-off of more than 300 pips. NASDAQ indices lost their shine after disappointing results from tech majors. US GDP grew at an annual rate of 2.6% in Q3 compared to a forecast of 2.3%. The US dollar index surged above 110.50 after upbeat data.
The US 10-year yield declined more than 8% after hitting a multi-year high of 4.33%. The US 10 and 2-year spread narrowed to -40 basis points from -57 bpbs.
According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Nov dropped to 88.5% from 98.4% a week ago.
Technically in the 4-hour chart, the pair is holding below short-term (21 and 55 EMA) and above long-term 200 EMA (0.98803). Any break below 0.9840 confirms further bearishness, a dip to 0.9780/0.9720 is possible. It hits an intraday high of 0.99272 and is currently trading around 0.98618.
The near-term resistance is around 0.9930 and any breach above targets 0.9960/1.0000.
Indicators (4-hour chart)
CCI (50)- Bearish
ADX- Neutral
It is good to sell on rallies around 0.9930 with SL around 0.9965 for a TP of 0.9725.
