The pair gained more than 100 pips from yesterday's low of 0.9470 on board-based US dollar buying. US dollar index surged sharply after hawkish comments from Chicago fed and San Francisco president Evans and Mary Daly respectively. According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Sep rose to 40.50% from 29% a day ago.
USDCHF hits a high of 0.95982 at the time of writing and is currently trading around 0.95926.
Bullish scenario-
The primary level to Watch – is 0.9600. Any convincing surge above confirms intraday bullishness. A jump to 0.9660/0.9720 is possible.
Bearish scenario-
Intraday support – 0.9470. Break below that level will take the pair to 0.9400/0.9360.
Indicators (1-Hour chart)
Directional movement index – Bullish
CCI (50) - Bullish
It is good to buy on dips around 0.9580-825 with SL around 0.9540 for a TP of 0.9660.
