Intraday trend – Bearish
Major intraday support – 0.9190
The pair has formed a double top around 0.93750 and shown a sell-off. USDCHF was one of the worst performers on Friday due spread of the Omicron virus. The demand for Safe-haven assets like the Swiss franc and Japanese yen increased drastically as investors lost confidence. The WHO has warned that chance of reinfection due to omicron is high. The decline in US treasury yield also puts pressure on the US dollar at higher levels. Significant bullish trend continuation if it breaks 0.9190 levels.
The near-term resistance is around 0.92750, any breach above targets 0.9330/0.93750. Significant support to be watched is 0.9240; the violation below will drag the pair down to 0.9190/0.91000.
Indicators (4 Hour chart)
Directional movement index – Bearish
CCI (50) - Bearish
It is good to sell on rallies around 0.92780-80 with SL around 0.9330 for a TP of 0.9100.
