USDCHF: Daily Outlook

USDCHF: Daily Outlook 

Major resistance -0.9780-85

USDCHF has shown a nice recovery of more than 100 pips in the past two trading days after a 2-month bearishness. The pair has lost more than 500 pips from high of 1.02369 on account of the trade war and geopolitical tension. This has increased demand for Safe-haven assets. But positive comments from US Treasury Secretary and Trump on US and China trade deal is putting pressure on the Swiss franc. Markets eye US final GDP data to be released today for further direction. Today it hits high of 0.98142 and is currently trading around 0.97940.

On the higher side, the pair is facing strong resistance around 0.9825 (23.6% fib) and any break above will take the pair till 0.9860/0.9910/0.99358 (300- day EMA)/0.99737 (200- day MA). Any daily close above 200- day MA will confirm bullish continuation.

On the flip side, near term support is around 0.9715 and any violation below targets 0.9690/0.9635/0.9600.

It is good to buy on dips around 0.9775-80 with SL around 0.9740 for the TP of 0.9900.