FxWirePro- USDCHF Daily Outlook

USDCHF is trading higher for the third consecutive day on board based on US dollar strength. The Fed meeting minutes showed that "almost all participants agreed that "it was appropriate to raise the target range for the federal funds rate 25 basis points at this meeting." Some members also favored a 50 bpbs rate hike. It hits an intraday high of 0.93247 and is currently trading around 0.92775.

  According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Mar jumped to 24% from 12.2% a week ago.

 The US 10-year yield traded flat despite hawkish comments from Fed members. The US 10 and 2-year spread narrowed to -77 basis points from -88% bpbs.

Technically in the 4-hour chart, the pair is holding below short-term (21  and 55 EMA) and above long-term 200 EMA (0.94980). Any break below 0.9270 confirms further bearishness, a dip to 0.9220/0.9160/0.9130 is possible.

 The near-term resistance is around 0.9335 and any breach above targets is 0.9400/0.9435/0.9500. Significant bullish continuation only if it breaks 0.9600.  

Indicators (4-hour chart)

CCI (50)- Bullish

ADX- Bullish

It is good to buy on dips around 0.9308-10 with SL around 0.9270 for the TP of 0.9400.