FxWirePro: USD/CHF Trade Idea

• USD/CHF has recovered sharply almost 100 pips from low of 0.9535 (Apr 10th 2018 low) after hawkish Fed FOMC minutes meeting. But upside is limited in USD/CHF for the near term as US-China trade war and geo political tensions will increase demand for safe haven asset. It is currently trading around 0.96230.
   
• The Fed FOMC minutes shows that members are positive on US economy and they expect inflation to reach 2% in the coming months. So the chance of more than three rate hikes are higher in this year. The near term resistance is around 0.9660 and any convincing break above will take the pair to next level till 0.9700/0.9725/0.9745.
   
• On the lower side near term support is around 0.9580 and any break below that level targets 0.9520/0.9480/0.9420.The pair should break below 0.9420 for further weakness.            

It is good to buy on dips around 0.9565-70 with SL around 0.9530 for the TP of 0.9660/0.9700.

Resistance

R1-0.9660
 

R2 –0.9700
 

R3- 0.9725

Support               
 

S1-0.9580
 

S2-0.9520
 

S3- 0.9450