Pattern formed- Falling wedge
USDCHF is consolidating in narrow range between 0.98628 and 0.99700 for past four trading days. Markets shown a recovery after dovish SNB monetary statement.SNB has kept its target range for the three-month LIBOR at -1.25% to -0.25% and deposit rate fixed at 0.75%. The central bank considered Swiss franc “highly valued” and cuts its inflation ,growth forecast . It is currently trading around 0.99472.
The near term major resistance is around 0.99635 (falling wedge break out) and any convincing break above targets 1.0010/1.00680. Any violation above 1.013 confirms minor trend reversal.
On the lower side ,support is around 0.9880 and any violation below will take the pair to next level till 0.9845/0.9800.
It is good to buy on dips around 0.99625-650 with SL around 0.9920 for the TP of 1.010.
Resistance
R1- 0.9965
R2 - 1.0010
R3- 1.00680
Support
S1- 0.9920
S2- 0.9880
S3- 0.9845
