FxWirePro- USDCHF Trade idea

The currency pair trades in a narrow range after US PCE data. It hit an intraday high of 0.91158 and is currently trading around 0.91038. The intraday bias appears to be bullish as long as the support level at 0.9030 holds.

Core Personal Consumption Expenditure Price Index increased by 0.2% in December 2024, just as forecasted but also higher than the 0.1% logged in November. This index accounts for how much the prices of goods and services, excluding food and energy, are increasing and also reflects clearer inflation patterns. Year-on-year, the core PCE inflation remains constant at 2.8% and is consistent with what analysts had forecasted. The Federal Reserve pays great attention to the index because it determines decisions for interest rates and monetary policy at around a 2% inflationary target. This index of 0.2% shows stability in price trends and is also important in trying to understand what is happening to the U.S. economy concerning inflation.

Technical Analysis and Resistance Levels

The pair is trading above the 34-EMA and below the 34-EMA on the 4-hour chart indicates a mixed trend. The immediate resistance is at 0.9070 any break above targets  0.9150/0.9200/0.92250/0.9275. 

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) - Bullish
Directional movement Index - Bullish

Trading Strategy Recommendation

It is good to buy on dips around 0.9070 with a stop-loss at 0.9030 for a TP of 0.9150.