FxWirePro- USDCHF Trade Idea

The currency pair pared some of its gains after hitting a multi-month high. It hit a low of 0.90073 and is currently trading around 0.90381. The intraday bias appears bullish as long as the support level at 0.9000 holds.

The U.S. S&P Global Services PMI for December 2024 was revised down to 56.8 from an earlier estimate of 58.5. This final figure is still positive as it is above November's reading of 56.1, showing growth in the services sector. The 56.8 number shows that the services sector is still expanding but at a slower pace than expected. The revision takes into account more comprehensive survey data, which showed high demand from customers but also indicated some issues with employment levels and cost management. In general, even with this adjustment, the services sector remains strong, especially in comparison to the manufacturing sector, which is declining.

Technical Analysis and Resistance Levels

The pair is trading above the 34-EMA and below the 55-EMA on the 4-hour chart indicating a mixed trend. The immediate resistance is at 0.9070 any break below targets 0.910/0.9150/ 0.9180/0.92250. 

Support Levels and Potential Declines

On the downside, near-term support is around 0.9000, any violation below will drag the pair to 0.8940/0.8890.

Bullish Indicators

CCI (50) - Bearish
Directional movement Index - Neutral

Trading Strategy Recommendation

It is good to sell on rallies around 0.9068-70 with a stop-loss at 0.9140 for a TP of 0.8890.