USDCHF declined sharply on Friday more than 150 pips from a high of 0.98772 on US-China trade war escalation. US President tweeted that existing 25% tariffs will be increased to 30% on $250 billion from Oct 1 and tariffs on $300 billion which has been fixed at 10% previously will be hiked to 15%. It hits an intraday low of 0.97135 and shown good recovery after China said it is willing to have a calm resolution trade dispute with the US. It is currently trading around 0.97869.
On the flip side, near term support is around 0.97400 and any violation will drag the pair to the next level till 0.9690/0.9660. Any break below 0.9660 confirms bearish continuation.
The near term resistance is around 0.98030 and any break above will take the USDCHF till 0.9870/0.9925. Major trend reversal only above 0.9980.
It is good to sell on rallies around 0.9835-40 with SL around 0.9900 for the TP of 0.9690.
