FxWirePro: USD/CHF takes support near 50 day MA, good to buy on dips
USD/CHF has shown a huge decline of more than 150 pips after hitting a high of 1.00680. Swiss franc was trading higher on account of broad based US dollar selling and slight increase of safe haven due to trade war tensio…
USD/CHF has shown a huge decline of more than 150 pips after hitting a high of 1.00680. Swiss franc was trading higher on account of broad based US dollar selling and slight increase of safe haven due to trade war tensions. US retail sales data came at 0.5% for the month of Jun and may month sales revised to 1.3% highest level Aug 2017. US CPI and PPI data came better than expected. The rise in inflation confirms more than two rate hikes by fed in this year. The downside is capped due to policy divergence between US fed and SNB.The pair hits intraday low of 0.99271 at the time of writing. It is currently trading around 0.99372.
On the higher side, near term resistance is around 0.9947 and any violation above will take the pair to next level till 1.000/1.0060. Any convincing break 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.
It is good to buy on dips around 0.9925-30 with SL around 0.9880 for the TP of 1.000/1.0060.
