FxWirePro: USDCHF forms bearish engulfing pattern, good to sell on rallies

Major resistance- 0.98025

Chart pattern- Bearish Engulfing

Ichimoku Analysis (8 Hour chart)

Tenken-Sen- 0.97154

Kijun-Sen- 0.96944

USDCHF declined sharply after a jump till 0.97843 yesterday. The minor sell-off occurred mainly due to a slight weakness in the US dollar index. DXY hits high of 100.40 and started to fall to 99.63.

Markets eye US Non-farm payroll data for further direction. US economy is expected to lose 22 million jobs in Apr and the unemployment rate to jump to 14%.

On the flip side, near-term support stands at 0.97098 (23.6% fib) and any violation below will drag the pair down till 0.96780/0.9650. The immediate resistance is at 0.9745, the indicative break above targets 0.9785/0.98025. Minor trend continuation can happen only if the pair breaks 0.98025.

It is good to sell on rallies around 0.9758-60 with SL around 0.98025 for the TP of 0.96785.