FxWirePro: USDCHF declines below 0.9900 on broad-based US dollar selling, good to sell on rallies

Major resistance  0.99580-60 (200- day MA)

USDCHF is trading lower for 3rd consecutive days. The decline was due to broad-based US dollar selling after Fed Chairman Powell testimony. The Fed has reaffirmed that it would take appropriate action to sustain expansion. US dollar index has lost more than 70 pips in the past two trading days. US 10 year yield has lost nearly 3.5% and a 2-year yield declined more 7.5%. Markets eye US CPI and jobless claims data for further direction. The pair hits an intraday low of 0.98538 and is currently trading around 0.98646.

On the higher side, near term resistance is around 0.99040 and any break above will take the pair to next level till 0.9950/0.9980/1.000/1.0025

The near term support is at 0.9840 and any violation below will take the pair to next level till 0.9780/0.9750.

It is good to sell on rallies around 0.9900 with SL around 0.9955 for the TP of 0.9750.