FxWirePro: USD/CHF recovers sharply more than 100 pips from yesterday’s low on hawkish Powell testimony, good to buy on dips

• USD/CHF has shown a huge recovery of more than 100 pips after more hawkish statement Fed Chairman Powell.Fed Chairman Powell on his testimony on Tuesday mentioned that US economy is growing faster with job market remains stronger and inflation will stay near 2%. The central bank said it is on the track to gradually raise interest rates. The pair pared most of its gains made on Monday after hitting high of 1.00680.US 2- year yield hits 10 year high at 2.6290% and spread between US -2 year and US 10 year yield has narrowed to 23 basis point. The downside is capped due to policy divergence between US fed and SNB.The pair hits intraday high of 1.00347. It is currently trading around 1.00035.  
   
• On the higher side, near term resistance is around 1.00680 and any violation above will take the pair to next level till 1.010/1.0180.
   
• The near term major support stands at 0.9930 (50- day MA) and any break below targets 0.988 (55- day EMA)/0.9800. The minor support is around 0.9975.

It is good to buy on dips around 0.9925-30 with SL around 0.9880 for the TP of 1.000/1.0060.