Major resistance- 0.99525
USDCHF is trading lower for 2nd consecutive days and declined more than 80 pips from high of 0.99290 made yesterday. US dollar index lost more than 0.80% from yesterday's high 99.35 on weak US ISM manufacturing data has increased hopes of an aggressive rate cut. It hits an intraday low of 0.98402 and is currently trading around 0.98461.
US 10 year bond yield recovered more than 5% from 1.428% lowest level since Jul 2016. The spread between US 10- year and 2-year yield has widened to 2 bps from -5 bps.
The near term support is around 0.9835 and any violation below will drag the pair till 0.9800/0.9770/0.9715. The decline from 1.02369 will get over at 0.9660 only if the pair closes above 0.99525 (200- day MA). The minor resistance is around 0.9900/0.99290.
It is good to sell on rallies around 0.9875-80 with SL around 0.9930 for the TP of 0.9720.
