- USD/CHF has shown huge jump almost 65 pips after dovish SNB statement. SNB has kept its deposit rates unchanged at -0.75% and target range for three month Libor stayed at between -1.25% and -0.25%. SNB’S Jordan said that CHF still overvalued and upgraded its inflation target to 0.7% from 0.4%. The pair hits high of 0.99045 and is currently trading around 0.9884.
- On the higher side, near term resistance is around 0.99273(61.8 % fibo) and any break above will take the pair to next level till 0.9945/0.9977 (Dec 8th 2017 high). It should break above 1.0040 for short term bullishness.
- The near term support is around 0.9845 (55 day EMA) and any violation below that level will drag the pair to next level till 0.9800/0.9770/0.9735.
It is good to buy on dips around 0.9845-0.9850 with SL around 0.9800 for the TP of 0.9945/0.9975.