USDCHF Rallies on Dollar Strength: Bulls Eye 0.8500

USDCHF gained sharply on board-based US dollar buying. It hit an intraday high of 0.83403 and is currently trading around 0.83160. Intraday bias appears to be bullish as long as the support 0.8180 holds. 

For the week of May 3, 2025, U.S. initial unemployment filings fell to 228,000, a healthier-than-expected flip from the two-month high at the previous week, and continuing claims fell to 1.88 million, indicating persistent labor market strength against economic uncertainty, new tariffs, and first-quarter GDP contraction. The unemployment rate held steady in April 2025 at 4.2%

Technical Analysis Points to Further Upside

The pair is trading below the 34-EMA and  55-EMA on the 4-hour chart indicating a minor downtrend. The immediate resistance is at 0.8350 any break above targets 0.8380/0.8435/0.8500.

Support Levels and Potential Declines

On the downside, near-term support is around 0.8260, any violation below will drag the pair to 0.8230/0.8180/0.8135/0.8090/0.8000.

Bullish  Indicators

CCI (50) - Bullish

Directional movement Index -  Bullish

Trading Strategy Recommendation

It is good to buy on dips around 0.8278-80 with a stop-loss at 0.823 for a TP of 0.8500.