The pair formed a temporary bottom around 0.93706 and regained above 0.9500. US dollar index advances to 107 level after US Fed meeting minutes. The meeting shows that the central bank to hike rates further until inflation cools off. US retail sales came unchanged at 0% compared to a forecast of 0.1%. USDCHF hits a high of 0.95410 and is currently trading around 0.95352.
According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Sep rose to 61% from 59% a day ago.
Bullish scenario-
The primary level to Watch – is 0.9550. Any convincing surge above confirms intraday bullishness. A jump to 0.9600/0.9660/0.9700 is possible.
Bearish scenario-
Intraday support – 0.9470. Break below that level will take the pair to 0.9430/0.9370.
Indicators (4-Hour chart)
Directional movement index – Bullish
CCI (50) - Bullish
It is good to buy on dips around 0.9528-30 with SL around 0.9470 for a TP of 0.9600.
