FxWirePro: USD/CHF consolidates around 0.9880, good to buy on dips
The USD/CHF rebounded from 0.9886 levels, after bunch of economic data released from the Eurozone printed negative figures. However, in the early US session after finding resistance at 0.9916 it has declined to trade aro…
The USD/CHF rebounded from 0.9886 levels, after bunch of economic data released from the Eurozone printed negative figures. However, in the early US session after finding resistance at 0.9916 it has declined to trade around 0.9886 levels.
The short term picture depicts more bullish trend for this pair, as the pair is supported by rising trend line in 30mins chart, the relative index is slightly pointing upwards at 56, the 55, 30 and 20 MA's is indicating slightly upward momentum in 4hour chart. Overall the technical indicators are depicting upside for this pair.
Later in the US session at 2:00pm EST (19:00GMT) Federal Reserve is set to issue statement on interest rate hike,followed by news conference by Fed chair Janet Yellen, therefore traders should trade this pair with caution as there will be high volatility in the market.
To the upside, the strong resistance can be seen at 0.9916, a break above this level would take the pair towards next resistance level at 1.0005.
To the downside strong support can be seen 0.9837, a break below this level will take the pair to next level at 0.9792.
Recommendation: Go long around 0.9850, targets 0.9950, 1.0035, SL 0.9780
