USDCHF: Short Term Outlook

• USD/CHF jumped sharply yesterday after ECB policy meeting. The pair hits high of 0.99979 at the time of writing. It has closed well above trend line resistance 0.9820 (trend line joining 1.03350 and 1.00998) .it is currently trading around 0.9969.
   
• ECB has kept its interest rates unchanged at 0.0% as widely expected and the marginal lending facility and deposit rate unchanged at 0.25% and -0.40% respectively.
   
• The Central bank tapers Asset purchase program (AAP) to 30 billion euros slightly dovish than expected. The central bank puts a gentle dovish twist on assets purchase. It has reduced to half asset purchase and extended its duration.
   
• Technically, the pair is trading well above 0.9840 (100- W MA) and near term psychological resistance is around 1.000 and any break above will take the pair to next level till 1.00998/1.0174.
   
• The near term major support is around 0.99250 (23.6 retracement of 0.9705 and 0.9993) and any break below will drag the pair till 0.9880/0.9840. Minor weakness can be seen only below 0.97730.

It is good to buy on dips around 0.9930 with SL around 0.9840 for the TP of 1.0099/1.0170