FxWirePro: USD/CHF hovers near 3-month low,break below 0.9785 confirms further weakness

Major support – 0.9785

Pattern formed - Falling Wedge

USD/CHF is consolidating after hitting low of 0.97878 and lost nearly 130 pips. The reason for decline is broad based US dollar selling and dovish comments by Fed on Friday is supporting Swiss franc.But easing US and China trade tensions is supporting global stock market slight rebound. It hits low of 0.97878 and is currently trading around 0.97995.

The near term support is around 0.97900 and any break below will drag the pair to next level till 0.9735/0.96800//0.96500.

The near term resistance is around 0.9845 and any violation above targets 0.9870. The minor trend reversal will happen only above 0.9925 (falling wedge break out resistance) and any close above will take the pair till 0.9965/1.0010. The pair should break above 1.0010 for further jump till 1.00680/1.0125.

It is good to sell on rallies around 0.9845-50 with SL around 0.9900 for the TP of 0.9735.

Resistance

R1- 0.9870

R2 - 0.9925

R3- 0.9965

Support               

S1- 0.9790

S2- 0.9735

S3- 0.9680