The pair trades lower for the third consecutive day and lost more than 150 pips on board-based US dollar selling. Markets eye US CPI data for further direction. The demand for safe-haven assets like the Swiss franc increased due to geopolitical tension between China and Taiwan. USDCHF hits a low of 0.95094 at the time of writing and is currently trading around 0.95135.
According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Sep rose to 68.50% from 41% a week ago.
Bullish scenario-
The primary level to Watch – is 0.9550. Any convincing surge above confirms intraday bullishness. A jump to 0.9600/0.9650/0.9720/0.9760 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 – Neutral
CCI (50) - Neutral
It is good to sell on rallies around 0.95480-55 with SL around 0.9600 for a TP of 0.9400.
