USDCHF trading flat ahead of US Midterm elections. The pair lost its shine after an increase in the US unemployment rate. SNB chairman Jordan said yesterday that "determined action" is required to check rising prices. Markets eye SNB chairman Jordan's speech for further direction. It hits an intraday high of 0.98722 and is currently trading around 0.98518.
According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Dec dropped to 54.4% from 44.50% a week ago.
The US 10-year yield pared some of its gains after hitting a high of 4.23%. The US 10 and 2-year spread narrowed to -52.50 basis points from -67 bpbs.
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 0.98350 confirms further bearishness; a dip to 0.9800/0.9760 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 0.9858-60 with SL around 0.9910 for the TP of 0.9765.
