FxWirePro: USDCHF trades slightly above 0.9800 as risk appetite shifts, good to sell on rallies

USDCHF is holding above 0.9800 as risk appetite shifts slightly to the global stock market. The sentiment got improved after the Chinese Commerce Ministry said that US-China trade talks are scheduled to happen by Sep. US futures gained more than 1% and markets eye US Prelim GDP data for further direction. US 10-year and 2-year yield curve got inverted by 5 bps which increases the chance of recession.  It hits an intraday high of 0.98490 and is currently trading around 0.98283.

On the flip side, near term support is around 0.9770 and any violation will drag the pair to the next level till 0.9730/0.9690/0.9660. Any break below 0.9660 confirms bearish continuation.

The near term resistance is around 0.98500 (minor trend line resistance) and any break above will take the USDCHF till 0.9880/0.9925. The decline from 1.02369 will come to end only if USDCHF trades above 0.9980.

It is good to sell on rallies around 0.9835-40 with SL around 0.9900 for the TP of 0.9690.