Pattern formed- Falling wedge
USDCHF has shown a very nice break out after a long consolidation between 0.98628 and 0.99655 for past four trading days. Swiss franc is trading lower 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 . Markets eye US fed monetary policy for further direction.It is currently trading around 0.99720.
The near term major resistance is around 0.9990 (200-- 4H MA) 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 0.9950 and any violation below will take the pair to next level till 0.9900/0.9880/0.9845.
It is good to buy on dips around 0.9955 with SL around 0.9920 for the TP of 1.010.
Resistance
R1- 0.9989
R2 - 1.0010
R3- 1.00680
Support
S1- 0.9920
S2- 0.9880
S3- 0.9845
