USDCHF lost its shine after US PCE data. It hit an intraday low of 0.82100 and is currently trading around 0.82277. Intraday bias appears to be bearish as long as the resistance 0.8250 holds.
Matching market expectations and implying a little slowing from March's 2.6%, the US Core PCE Price Index for April showed a 0.1% monthly increase and a 2.5% annual rise. Although inflation is moderate, it remains higher than the Federal Reserve's 2% goal. Headline PCE inflation at 2.1% year-over-year, these figures are predicted to confirm beliefs that the Fed will keep constant interest rates during the June meeting as lawmakers evaluate continuous inflation pressures.
Technical Analysis Points to Further Upside
The pair is trading below the 55-EMA, below 200 EMA and 365 EMA on the 1-hour chart indicating a mixed trend. The immediate resistance is at 0.8350 any break above targets 0.8375/0.8435/0.8480.
Support Levels and Potential Declines
On the downside, near-term support is around 0.8180, any violation below will drag the pair to 0.8180/0.8135/0.8090/0.8000.
Bullish Indicators (1-Hour)
CCI (50) - Bullish
Directional movement Index - neutral
Trading Strategy Recommendation
It is good to buy on dips around 0.8258-60 with a stop-loss at 0.82220 for a TP of 0.8378/0.8405.
