FxWirePro- USDCHF Trade idea

FxWirePro- USDCHF Trade idea

The currency pair pared some of its gains after weak US CPI. It hit a low of 0.90795 and is currently trading around 0.91158. The intraday bias appears bullish as long as the support level at 0.9000 holds.

As of January 2025, the Philadelphia Fed Manufacturing Index reported a tremendous decline at -10.90, down from -4.40 the previous month and -7.90 from last year. A negative index value would mean that manufacturing is shrinking; it reflects lower business activity. The index can be used to help assess manufacturing health in parts of Pennsylvania, New Jersey, and Delaware. It is based on a survey of manufacturers concerning their orders, shipments, and employment. The next update is scheduled to be released on January 16, 2025, with greater detail regarding the current state of the economy within manufacturing.

Technical Analysis and Resistance Levels

The pair is trading below the 55-EMA and above the 34-EMA on the 4-hour chart indicating a mixed trend. The immediate resistance is at 0.9150 any break below targets  0.9200/0.92250/0.9275. 

Support Levels and Potential Declines

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

Bullish Indicators

CCI (50) - Bearish
Directional movement Index - Neutral

Trading Strategy Recommendation

It is good to sell on rallies around 0.9128-30 with a stop-loss at 0.9180 for a TP of 0.9030.