FxWirePro- USDCHF Trade Idea
The pair pared some of its gains after the US CPI. Overall bias remains bullish as long as support 0.8700 holds. It hit a high of 0.88419 at the time of writing and is currently trading around 0.88067.
The policy divergence between the US Fed and SNB supports the pair at lower levels.
The U.S. Consumer Price Index (CPI) data for October 2024 reveals several key points. The annual headline CPI rose to 2.6%, up from 2.4% in September, with a month-over-month increase of +0.2%, aligned with expectations. The unrounded month-over-month figure was reported at 0.2441%, compared to 0.1799% the previous month. The core CPI, which excludes food and energy prices, remained steady at 3.3% year-over-year, consistent with the prior month. This data indicates ongoing inflationary pressures in the economy, which may influence the Federal Reserve's monetary policy decisions. The stable core CPI signals that underlying inflation is still a concern. Overall, these figures are likely to impact market expectations regarding future interest rate adjustments as the Fed balances inflation control with economic growth support.
Technical Analysis
The pair is currently trading above the 34- and 55-EMA on the 4-hour chart.
Near-Term Resistance: Current resistance is at 0.8835. A break above this level could lead to targets at 0.8875/0.8900/0.8925. The break above 0.87500 confirms that the decline from 0.9225 was completed at 0.83750.
Immediate Support: The next support level is at 0.8750. If this level is broken, the pair could drop to 0.8700/0.8660/0.8600/0.8580, 0.8550, 0.8525, 0.8499, 0.8440, 0.8420, 0.8390, 0.8365 (61.8% Fibonacci projection), or even 0.8340.
Indicator Analysis (4-hour chart)
- CCI (50): Bullish
- Average Directional Movement Index: Bullish
Overall, the trend remains neutral
Trading Recommendation
Consider buying on dips around 0.8780, with a stop loss set at 0.8720 and aiming for a target price of 0.8925.
