USD/CHF poised for breakout: Dollar strength on trade uncertainty targets 0.8050

USDCHF has been trading in a narrow range between 0.78712 and 0.79860 for the past six days. It hits an intraday high of 0.79821 and is currently trading around 0.79761. Intraday bias appears to be bullish as long as the support at 0.7920 holds.  

Ongoing uncertainty regarding trade agreements is helping the US dollar find support against the Swiss franc as investors run to safe-haven assets amid global trade disputes. Though there have been some swings, the dollar's strength comes from its position as a top safe-haven currency, which gains from the present political and economic uncertainties about significant trade negotiations with major partners such as China and the EU. Though the Swiss franc is also seen as a safe-haven currency, its appreciation has been constrained by the persistent need for the dollar as a hedge against risk, given the dollar's higher global reserve status and liquidity during volatile times.

Technical Analysis Points to Further Upside

The pair is trading above the   55-EMA, 200 EMA, and 365 EMA on the 15-min chart, indicating a bullish trend. The immediate resistance is at  0.7985, any break above targets 0.8000/0.8050/0.8090/0.8140/0.8180/0.8250/0.8300.

Support Levels and Potential Declines

On the downside, near-term support is around 0.7920; any violation below will drag the pair to 0.7900/0.7860/0.7800.

Indicators (15-min chart)

CCI (50) - Bullish

Directional Movement Index -  Bullish

Trading Strategy Recommendation

It is good to buy on dips around 0.7950 with a stop-loss at 0.7920 for a TP of 0.8050.