- USD/CHF was trading flat and declined almost 40 pips from the yesterday high of 0.98787. The pair is consolidating below 78.6% retracement at 0.9975. The pair was trading low due to slight weakness in US dollar index. The senate passed a landmark US tax bill early Wednesday and bill now needs approval from House of Representatives later Wednesday before signing by US president Donald Trump. US housing starts came at better than expected. It came at 1.297 million in Nov compared to forecast of 1.25 million. The pair hits low of 0.98348 yesterday and is currently trading around 0.98536.
- On the higher side, near term resistance is around 0.99220 (trend line joining 0.9977 and 0.99345) and any break above will take the pair to next level till 0.9977 (Dec 8th 2017 high)/1.000. It should break above 1.0040 for short term bullishness.
- The near term support is around 0.9835 and any violation below that level will drag the pair to next level till 0.9810 (200 – day EMA)/0.9770/0.9735.
It is good to sell on rallies around 0.9875-0.9880 with SL around 0.9925 for the TP of 0.9810/0.97730.
