USD/CHF is trading slightly higher after trade deal between US and Europe happened yesterday.US and Europe have reached a deal yesterday to work towards “zero tariff, barriers and subsidies on non-auto industrial goods. …
USD/CHF is trading slightly higher after trade deal between US and Europe happened yesterday.US and Europe have reached a deal yesterday to work towards “zero tariff, barriers and subsidies on non-auto industrial goods. The slight jump was due to easing trade tensions. But pair lost more than 140 pips from high of 1.00434 on increasing trade war tension has increased demand of safe haven asset like yen, Swiss franc and gold. US 10 year bond yield has jumped more than 2.5% from the low of 2.80%. US 2- year yield hits fresh 10 year high at 2.6780% and spread between US -2 year and US 10 year yield has decreased from increased from 23 basis point to 32 basis point. The downside is capped due to policy divergence between US fed and SNB.The pair hits low of 0.99010. It is currently trading around 0.99170.
On the higher side, near term resistance is around 0.9946 (20- day MA) and any violation above will take the pair to next level till 1.000/1.00680/1.010.
The near term major support stands at 0.9900 (55- day EMA) and any break below targets 0.9855/0.9800. The minor support is around 0.9975.
It is good to buy on dips around 0.9900 with SL around 0.9850 for the TP of 1.000/1.010.
