The pair trades higher for the past week on board-based US dollar buying. US dollar index gained strength as Fed expects to raise rates until inflation cools off. Philly fed manufacturing index rose to 6.2 in Aug compared to an estimate of -5. The number of people who have filed for unemployment benefits dropped to 250000 below expectations of 265K. USDCHF hits a high of 0.95925 and is currently trading around 0.95810.
According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Sep rose to 59.5% from 57% a week ago.
Bullish scenario-
The primary level to Watch – is 0.9600. Any convincing surge above confirms intraday bullishness. A jump to 0.9660/0.9700/0.9765 is possible.
Bearish scenario-
Intraday support – 0.9540. Break below that level will take the pair to 0.9470/0.9430.
Indicators (4-Hour chart)
Directional movement index – Bullish
CCI (50) - Bullish
It is good to buy on dips around 0.9558-60 with SL around 0.9500 for a TP of 0.9660.
