Major Resistance- 0.99787 (200-day MA)
USDCHF is trading higher for 2nd consecutive days and hits 6- week high after Fed monetary policy. The central bank cuts interest rates by 25 bps and it was less dovish than expected. According to the CME FedWatch tool, the probability of no rate change in Sep 2019 has decreased from 49.3% to 45.8% and the chance of 25 bps rate cut increased from 48% yesterday to 54%.US dollar index has broken major resistance 98.37 and hits 98.93 highest level since May 2017.
Markets eye US ISM manufacturing data for further direction.
The near term resistance is around 0.99787 and any violation above will take the pair to next level till 1.00150. Minor trend reversal only above 1.00150. Any break above 1.00150 targets 1.0050.
On the flip side, near term support is around 0.99180 and any convincing break below targets 0.98795/0.9800.
It is good to buy on dips around 0.9945-48 with SL around 0.99000 for the TP of 1.00150/1.0050.
