The pair continues to trade higher for a second consecutive week on board-based US dollar buying. US economy has added 372K jobs in June beating the forecast 260K. The upbeat jobs data has cooled off recession worries and increased the chance of aggressive rate hikes. According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Jul rose to 93% from 86.2% a week ago. USDCHF hits a high of 0.98016 at the time of writing and is currently trading around 0.97914.
Bullish scenario-
The primary level to Watch – is 0.9800. Any convincing surge above confirms intraday bullishness. A jump to 0.98650/0.9900 is possible.
Bearish scenario-
Intraday support – 0.9750. Break below that level will take the pair to 0.9720/0.9660/0.9600.
Indicators (4-Hour chart)
Directional movement index – Bullish
CCI (50) - Bullish
It is good to buy on dips around 0.9760 with SL around 0.9720 for a TP of 0.9900.
