USD/CHF has shown a good recovery of more than 100 pips after more hawkish Fed statement. Fed was more optimistic on economy and has upgraded from solid to strong for first time since 2006. This confirms two more rate hikes in this year. The trade war tensions is slightly supporting Swiss franc but policy divergence between Fed and SNB will prevent further downside. It hits intraday high of 0.99644 and is currently trading around 0.99635.
Market eyes US non farm payroll which is to be released today for further direction. US economy is expected to add 190k new jobs in the month of Jul and wage growth to show a minor jump to 2.7% y/y.
The near term resistance is around 0.99780 and any break above will take the pair to next level till 1.000/1.00680. Any bullish continuation only above 1.00680.
On the lower side, minor support is around 0.9838 (100- day MA) and any violation below will drag the pair down till 0.9780 (Jun 7th 2018 low)/0.9755.
It is good to buy on dips around 0.9925-30 with SL around 0.9870 for the TP of 1.000/1.00680.
