US Dollar Strength Fuels USD/CHF Rally: Bullish Outlook and Dips Present Buying Opportunities

Intraday bias remains bullish as long as support 0.8550 holds. It hit a high of  0.86410 at the time of writing and is currently trading around 0.86156.

Fed Governor Christopher Waller acknowledged that recent economic data is mixed but asserted the US economy is on “solid footing.” He highlighted strong employment levels and progress in inflation, despite occasional setbacks.

Major US economic data to watch - Empire State Manufacturing Index

Technicals-

The pair is trading above 34 and 55 EMA in the 4-hour chart.

The near-term resistance is around 0.8660 any break above targets is 0.8698/0.8750. The bearish pattern from 0.92244 will be completed at 0.8375 if the pair closes above 0.8750.  A jump to 0.8800/0.8925 is possible. The immediate support is at 0.8580, any violation below will drag the pair to 0.8550/0.8525/ 0.84990/0.8440/0.8420/0.8390/0.8365 (61.% fib projection)/0.8340.

Indicator (4-hour chart)

CCI (50)- Bullish

Average directional movement Index -  Bullish. Overall trend is bullish

It is good to buy on dips around 0.8580 with SL around 0.8525 for a TP of 0.8748.