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USDCHF trades above 55- day EMA, jump till 0.9975 possible

Major resistance - 0.9860

 

USDCHF continues to trade higher for 3rd consecutive days and jumped more than 100 pips on declining demand for Safe-haven assets and broad-based US dollar buying. US jobless claims dropped 12,000 to seasonally adjusted 209000 for the week ended on Aug 17. The IHS Markit Flash Purchasing Manager's Index came at 49.9 below 50 levels for the first time since Sep 2009. Markets eye Jackson hole symposium for further direction. It is currently trading around 0.98718.

 

US dollar index has recovered more than 50 pips from a low of 96.96 made yesterday. Any minor weakness only below 97.80. In the short term, it is expected to reach 98.93 high made on Aug 1st, 2019.

 

On the higher side, near term resistance is around 0.9860 and any convincing break above will take the pair till 0.9900/0.9980. The major trend reversal only above 0.9980.

 

The near term support is around 0.9810 and any violation below will drag the pair to the next level till 0.9800/0.9740/0.9690. Any major weakness below 0.9660.

 

It is good to buy on dips around 0.9855-58 with SL around 0.9800 for the TP of 0.9980.

 

 

 

By Rangarajan Hariharan
  • Market Data
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