FxWirePro- USDCHF Trade idea

The currency pair trades higher on strong US treasury yields. It hit a high of 0.91877 and is currently trading around 0.91583. The intraday bias appears bullish as long as the support level at 0.9000 holds.

Treasury Yields Surge

US Treasury yields shot sharply last week after the strong labor market data. The 10-year Treasury note yield has risen to nearly 4.77%, its highest level since November 2023, as job reports turned positive. Economists had predicted 155,000 new jobs, but job growth topped this number, making the economy appear even stronger. This increase in yields threatens to raise the specter of inflation and an additional round of interest rate hikes by the Federal Reserve. If the economy remains healthy, the 10-year yield may top or exceed 5% very soon.

Technical Analysis and Resistance Levels

The pair is trading above the 34-EMA and 55-EMA on the 4-hour chart  indicates a bullish trend. The immediate resistance is at 0.9200 any break below targets  0.92250/0.9275. 

Support Levels and Potential Declines

On the downside, near-term support is around 0.9140, any violation below will drag the pair to 0.9100/0.9070/0.9030/0.9000/0.8940/0.8890.

Bullish Indicators

CCI (50) - Bullish
Directional movement Index - Bullish

Trading Strategy Recommendation

It is good to buy on dips around 0.9140 with a stop-loss at 0.9100 for a TP of 0.9270.