FxWirePro:USD/CHF Trade Idea

USD/CHF has once again declined after a jump above 0.9990 level. The pair is struggling to break above parity level 1.000.It hits high of 0.9995 and started to decline sharply after Fed pauses rate hike.According Fedwatch tool highest probability of hike by Fed this year is at 9% 3Q19 and chance of rate cut is at 30% chance in Q1 2020. US-China trade talks and Brexit uncertainty also supports Swiss franc. The pair is currently trading around 0.99233.

The near term major resistance is around 0.9950 and any convincing break above targets 0.9975/1.0010. Any break above 1.0010 confirms minor trend reversal and a jump till 1.00680/1.0130 is possible.

On the lower side, near term support is around 0.9900 (200- day MA) and any break below targets 0.9840/0.9800.

It is good to sell on rallies around 0.9950-55 with SL around 1.000 for the TP of 0.9845/0.9800.

Resistance

R1- 0.9950

R2 - 1.0010

R3- 1.00680

Support               

S1- 0.9900

S2- 0.9845

S3- 0.9800