FxWirePro: USD/CHF declining after hitting high of 0.99750 on escalating trade war, good to buy on dips

USD/CHF has once again recovered sharply after hitting low of 0.9895. It hits high of 0.99750 and started to decline from that level.  US dollar index was trading higher and has broken major resistance at 95.65 and hits 96.17.US Producer price index (PPI) came flat with no change for the first time in seven months and US weekly jobless claims came at 213,000 vs forecast of 222,000. Markets eye US CPI data which is to be released at 12:30 GMT. Short term trend is weak as long as resistance 1.000 holds. The escalating trade war between US and China supports Swiss franc. Markets eye US PPI and CPI data for further direction. The policy divergence will prevent the downside of USD/CHF.

The near term resistance is around 0.99780 and any break above will take the pair to next level till 1.000/1.00680. Any bullish continuation only above 1.00680.

On the lower side, minor support is around 0.9920 and any violation below will drag the pair down till 0.9900/0.9860/0.9835 (100- day MA)/0.9780 (Jun 7th 2018 low)/0.9755.

It is good to buy on dips around 0.9915-20 with SL around 0.9870 for the TP of 1.000/1.00680.