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 0.90625. The intraday bias appears bullish as long as the support level at 0.9030 holds.

On January 3, 2025, the ISM Manufacturing PMI for December was slightly higher at 49.3% compared to 48.4% in November. This is the highest since March 2024, and it indicates that manufacturing activity has made slight progress, though still in contraction overall. The New Orders Index did increase to 52.5%, which means more new orders for the second month in a row.

While production is increasing, employment is still falling as companies cut jobs in anticipation of future demand. Supplier deliveries have slowed, and raw materials inventories have declined, indicating supply chain issues. Prices are rising, which worries manufacturers, and this aligns with broader inflation trends.
Despite the increase in the PMI, the sectors are still being faced with troubles such as weakening demand and lack of certainty. None of the six largest industries in manufacturing noted growth in December, which demonstrates that the ongoing problems persist. Overall, crucial problems persisting include increasing price and job shedding.

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 0.9030, with a stop-loss set at 0.9000 and a target price of 0.9150 or 0.9180 for potential gains.