FxWirePro- USDCHF Daily Outlook

USDCHF showed a minor pullback after two days of a bearish trend. Markets eye SNB chairman Jordan's speech for further direction. It hits an intraday high of 0.99233 and is currently trading around 0.99177.

 Markets eye US mid-term elections and CPI data for further direction.

The US 10-year yield recovered after a minor sell-off to 4.125%. The US 10 and 2-year spread narrowed to -50 basis points from -67 bpbs.

 According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Dec increased to 43.2% from 38.5% a day ago.

 Technically in the 4-hour chart, the pair is holding below short-term (21 and 55 EMA) and above long-term 200 EMA (0.99205). Any break below 0.9870 confirms further bearishness; a dip to 0.9840/0.9800 is possible.

 The near-term resistance is around 0.9935 and any breach above targets 0.9965/1.000/1.00350/1.00750/1.0150. Significant trend continuation only if it breaks 1.0150. 

Indicators (4-hour chart)

CCI (50) - Bearish

ADX- Neutral

It is good to sell on rallies around 0.9948-50 with SL around 1.00 for the TP of 0.9845/0.9800.