USDCHF pared some of its gains made this week on profit booking. The pair was one of the best performers the previous month on board-based US dollar buying. Hawkish comments from the Fed chairman in Jackson hole also pushed the pair higher. Market eyes US Non-farm payroll for further direction.
US ISM manufacturing PMI came at 52.80 in Aug vs expectations of 52. The number of people who have filed for unemployment benefits has dropped to 23200 compared to an estimated 252K.
Technically in the 15 min chart, the pair is holding below short term (21- and 55 EMA) and above 200 EMA (0.97875). Any break below 0.9780 will take the pair to 0.970/0.9660. USDCHF hits an intraday low of 0.97869 and is currently trading around 0.98011.
The near-term resistance is around 0.98865, and any breach below targets 0.9948/1.000.
Indicators (15-Min chart)
CCI (50)- Bearish
ADX- Neutral
It is good to sell on rallies around 0.9848-50 with SL around 0.9900 for TP of 0.9700.
