FxWirePro: USD/CHF Daily Outlook

USD/CHF has once again declined after hitting high of 0.99825. This is the third time the pair trades slightly above 0.9980 and started to decline. The pair is consolidating between 0.9895 and 0.9985 for the past 8 trading session.US retail sales came at 0.5% in the month of Jul compared to forecast of 0.1% and core reading came at 0.5% beating forecast of 0.4%. The New york Empire state Manufacturing index came at 25.6 up from previous 22.6.

US dollar index is trading slightly lower after hitting fresh 13 month high. It hits high of 96.98 and is currently trading around 96.64. The geopolitical tensions in Turkey , US and China is supporting prices of Swiss franc. The Turkish lira hits new record low at 7.08 and recovered more than 10%.The policy divergence between US fed and SNB will prevent the major downside of USD/CHF.

The near term resistance is around 0.99850 and any break above will take the pair to next level till 1.000/1.00680. Any bullish continuation only above 1.00680.

On the lower side, minor support is around 0.9900 and any violation below will drag the pair down till 0.9860 (100- day MA)/0.9780 (Jun 7th 2018 low)/0.9755.

It is good to buy on dips around 0.9925-30 with SL around 0.9895 for the TP of 1.000/1.00680.