USDCHF consolidating in narrow range between 0.9850 to 0.99605 for past 6 trading days. The Swiss franc is holding higher against all majors due to ongoing Middle East tension. The two tankers got exploded near Strait of Hormuz and US Secretary of State Mike Pompeo said that “Iran is responsible for the attack”. the escalation of geopolitical tension has increased demand for safe haven assets. The pair hits low of 0.99180 and is currently trading around 0.99405.
The SNB has kept its rates unchanged at -0.75% and introduced new benchmark SNB policy rate from 3-month LIBOR. The central bank stated clearly that it will keep rates exceptionally low and will intervene in the currency market if Swiss franc strengthens.
The major trend reversal can happen only above 0.9960 and any violation above targets 1.000/1.0025.
It is good to buy above 0.9960 with SL around 0.9920 for the TP of 1.0050.
