FxWirePro: USD/CHF Trade Idea

• USD/CHF has shown a minor jump after hitting low of 0.99010. The pair has declined more than 140 pips from the high of 1.00434 made on Jul 19th 2018. The escalating trade war between US and China and comments by Donald Trump on fed has increased broad based US Dollar selling. But US dollar has shown a good jump after Donald Trump and his aides has told to fox news that US economy is to grow at 4.8% in Q2. The increasing trade war tension has increased demand of safe haven asset like yen, Swiss franc and gold. US 10 year bond yield recovered more than 3% from yesterday low of 2.823%. US 2- year yield pared some of its gain after hitting 10 year high at 2.640% and spread between US -2 year and US 10 year yield has increased from 23 basis point to 34 basis point. The downside is capped due to policy divergence between US fed and SNB.The pair hits low of 0.99010. It is currently trading around 0.99372.
   
• On the higher side, near term resistance is around 0.9946 (20- day MA) and any violation above will take the pair to next level till 1.000/1.00680/1.010.
   
• The near term major support stands at 0.9900 (55- day EMA) and any break below targets 0.9855/0.9800. The minor support is around 0.9975.
  
  It is good to buy on dips around 0.9900 with SL around 0.9850 for the TP of 1.000/1.010.

Resistance

R1- 0.9946

R2 –1.000

R3- 1.00680

Support               

S1- 0.9900

S2- 0.9850

S3-0.9780