FxWirePro: USDCHF forms Big M pattern, any break below 0.9690 confirms weakness

Chart pattern- Big M pattern

Major support- 0.9690

USDCHF is consolidating in a narrow range after hitting a low of 0.96922. The escalation of the US-China trade war is putting pressure on this pair at higher levels. The Chinese Yuan has weakened more than 2.5% this month and is trading slightly above 7 levels. The US 10 year bond yield is still in a bearish trend and any minor jump can be seen only above 1.88%.

US dollar index is consolidating between 97.21 and 97.85 for the past 3 trading days. Any major trend reversal only above 99.

The near term resistance is around 0.9800 and any violation above will take the pair to next level till 0.9880/0.9926. Minor trend reversal only above 0.99785. Any break above 0.9978 targets 1.00146.

 On the flip side, major support is around 0.9690 and any convincing break below targets 0.9635/0.9580.

It is good to sell on rallies around 0.9750-55 with SL around 0.9805 for the TP of 0.9600.