FxWirePro- USDCHF Trade Idea

The currency pair surged sharply on board-based US dollar buying. It hit a high of 0.91372  and is currently trading around 0.90960. The intraday bias appears bullish as long as the support level at 0.9030 holds.

Recent statistics indicate a stronger US labor market as jobless claims declined from 9,000 to 211,000, the lowest since April 2024, according to estimates. Continuous claims also tapered to a three-month low of 1.84 million, which meant fewer layoffs. According to preliminary data, the final manufacturing PMI for December 2024 was posted at 47.0, translating to a contraction in the manufacturing sector, having come down from 48.0 for November. This implies that while employment is stable, manufacturing is under strain due to lower demand. The economy is facing a complex situation as it balances the strong job market with the plight of manufacturing during inflation and the changing needs of consumers.

Technical Analysis and Resistance Levels

The pair is trading above both the 34-EMA and 55-EMA on the 4-hour chart, suggesting a potential uptrend. The next important resistance level to watch is at 0.9150; if breached, targets could go up to  0.9180/0.92250. 

Support Levels and Potential Declines

On the downside, near-term support is around 0.9070, any violation below will drag the pair to 0.9030/0.9000.

Bullish Indicators

CCI (50) - Bullish
Directional movement Index - Neutral

Trading Strategy Recommendation

It is good to buy on dips around 0.9050, with a stop-loss set at 0.9000 and a target price of 0.9150 or 0.9180 for potential gains.