Major Resistance - 0.9880 (21 -day MA)
USDCHF trades higher and extends gain till 21- day MA yesterday. The pair has jumped nearly 100 pips from a low of 0.97789. The easing trade war tension and the diminishing chance of 50 bpbs rate cut by the Fed are supporting the US dollar. The probability of a rate cut by 50 bpbs point has reduced to 18% from 50% in the previous week, according to CME FedWatch tool. It hits an intraday high of 0.98825 and is currently trading around 0.98780.
The near term major resistance is around 0.9880 (21- day MA) and any break above will take the pair to next level till 0.99332 (300- day EMA)/0.99750 (200 day MA).
On the flip side, near term support is around 0.98000 and any violation below will drag the pair till 0.9750/0.9690.
It is good to buy on dips around 0.9868-70 with SL around 0.9830 for the TP of 0.9975.
